Self Assessment tax is almost due: are you ready?
The day that many entrepreneurs dread is almost upon us. Online Self Assessment tax returns must be submitted by the end of January.
Whether you’re a freelancer, contractor, specialist landlord or small business owner, this process can be complex and time-consuming, and lead to some major headaches.
But, by getting prepared in advance and using technology to help you log transactions as they arise, you can make the process much more streamlined.
When is the deadline for submitting Self Assessment tax details?
31 January is the final deadline, by which your Self Assessment tax return must have been received by HMRC.
If you intend for HMRC to automatically collect tax from your wages or pension, you should have submitted by 30 December.
If you didn’t submit your application online last year and haven’t yet created an account, you should allow up to 20 working days for registration to take place.
The deadline for the submission of paper forms is significantly earlier than for online submission. This tax year, the deadline was midnight on 31 October.
How can I prepare to submit my Self Assessment tax return?
Submitting your Self Assessment tax return is so much easier when you’ve got things ready in advance.
Too many entrepreneurs continue to stick with manual tax return submission methods, which means you’ll have to work to a tighter deadline and do all the administrative legwork yourself.
By switching to digital tax submission and adopting the right accountancy tools, this process can be significantly streamlined.
FreeAgent and Xero have a host of in-built features to assist with tax return submission. Such software will automatically gather together all incomings and outgoings made by your business, and store them conveniently in a single location.
Based on these figures, the software can provide a real-time overview of your cash flow at any point throughout the year, enabling you to keep an eye on things and estimate the total amount of tax likely to be due. Knowing this in advance also gives you scope to budget effectively.
As all your paperwork will have been automatically filed and logged, sending tax return documents over to your accountant for submission needn’t be a matter of gathering together loose scraps of paper that have been accumulating all year.
Instead, you can do it with just a couple of clicks, then get back to your primary job role.
Synchronising your enterprise’s financial records with advanced accountancy software can help you save a significant number of hours when it comes time to submit your tax return.
By collating all your incomings and outgoings in a single location throughout the year, you can avoid another major headache next time round.