There are only a few days left before the self-assessment tax return deadline. It can be a rather challenging time for new business owners who face the January deadline for the first time. Here are our top tips to help you get through it.
1. File on time
Avoid the penalty associated with late filing. This is an automatic penalty of at least £100 if you file after the 31st January. This penalty increases after 3 months with a daily penaly of £10 a day per day (up to £900). After 6 months, another %5 of hte tax due (or £300 max) and after 12 months, another 5% (or £300 max).
2. Follow the guide
HMRC provide very useful guides and videos with full explanations of what to do. They even have online chat sessions or you could use social media to get your questions answered. If you’re more comfortable talking to someone over the phone, you can call 0300 200 3310, but remember the helpline will be rather busy.
It is so easy to make mistakes in this stressful time that it’s always a good idea to prepare your tax return in advance to allow yourself enough time to check it many times over. However, don’t panic if there is a mistake you haven’t spotted as HMRC will usually give you 12 months to correct it.
4. Get an accountant or an accounting software
As a business owner, it’s often best to try to focus on the things you are good at and enjoy. So why not invest in an accountant. He will not only be able to deal with all teh accounting side of your business accurately, he could also help you grow your business through financial advice.
As a startup, you may find the cost of an accountant to be too great for your business in this moment in time. Why not look at accounting software. Many have a self assessment module built-in, which would extract it with very little effort.
The option of getting an accountant or accounting software is probably onot a feasible one for this year’s self assessment, but this is probably something to consider ahead of next year’s self-assessment tax return.
We wish you the best of luck with this year’s self-assessment and the growth of your business.