Do you file a tax return each year? You could be one of the many people who leave it until the deadline as possible to get it done. While the 31st of January feels like a long time away, why put off until tomorrow what you can do today?
Completing your tax return now will undoubtedly be less stressful than leaving it until the last minute, giving you the chance to iron out any problems and gather all of the paperwork you need.
Get ahead of this year’s tax return with the following tips.
Start gathering all of the information you need
Filing a tax return can seem like a lot of work, but if you’re organised, it shouldn’t have too much of an impact on your workload. Now is a great time to start hunting down receipts, invoices and checking your business accounts to make sure all of the information you need is there. There are some fantastic apps available that will help you keep track of all of your tax-deductible expenses, so it’s worth using one of these going forward to make your tax return process simpler in the future.
Get to grips with Making Tax Digital
The HMRC are making significant changes over the coming years, hoping to become one of the leaders in digital taxes. The changes are being implemented over time, but some of them could already affect you. It’s worth reading up on Making Tax Digital with MNE Accounting, which can help you understand the initial changes that are coming to VAT-registered businesses making over £85,000 a year. It’s important to stay up to date on tax issues, and make sure you’re aware of any changes that affect you and your business.
Verify your information
Completing your tax return now will give you ample opportunity to check for errors before the end of January deadline. Take some time to double-check your figures and make sure you’re confident before you submit. A last-minute submission can lead to panic and errors, but working on it now can help you stay calm and organised.
A strategy for future tax years
Your tax return is something that will happen every year, so it’s important to be prepared for it. Whether you’re a new entrepreneur or you’re running a mature business, it’s important that you take tax seriously. Collect business receipts throughout the year and calculate monthly records so that you know what your tax bill looks like – it can help you avoid serious problems in the future and keep you out of financial difficulty near the end of the tax year. A tax specialist could help you get your business in order to tackle taxes easily going forward.
While the tax return deadline might seem far away, you can be sure it will come out of nowhere soon once Christmas and New Year come around. Avoid the last-minute rush and get your return done now – you’ll be glad you got a head start when that deadline comes your way.