Running a business? We all know that feeling – January rolls around, and you just can’t believe how quickly it all happened. Christmas has only just been and gone, hasn’t it? Of course there’s no money and suddenly the tax man is going to be asking for cash too. No wonder January is miserable.
- What if there was a better way?
- What if you knew what was needed now?
- How great would you feel with money saved & ready?
- How about enjoying Brighton Beach by June instead?
A handy little guide to less stress on your self employed tax return (note – willpower required):
April – end of month: Collate all receipts & sales invoices, either electronically or in an envelope. This is the time to face that horrible stack of paperwork that’s been lurking. Scan & save, so you can Shred, a lovely cathartic feeling.
May – If working on a spreadsheet – work through each month slowly, cuppa in hand. Maybe with your favourite music (Fat Boy Slim anyone?). Start by entering all your income and expenses by month. Ensure each expense is valid to submit, correctly categorised, and calculations correct. If working the old fashioned way, get ye calculator and while the time away merrily.
Early June – Check you have entered all your income, every penny – whether self employed, or a mix of s/e and employed. Check the latest tax allowance for the year you are working on, the tax man can be generous after all. Check whether there are any pension contributions or any other HMRC allowable areas. Double check all the sales vs expenses.
Mid June – Take a deep breath. Time to submit before the weather gets too hot (and you want to be at Hove Lagoon enjoying a cool Mr Whippy instead). Log in to your tax portal, and start moving through sections. If easier, you can do it in stages and come back another time. Personally I recommend a nice cool drink and just getting it ALL done now. You know you want to relax, so just power on through.
Same day – enjoy seeing what you owe straight away on the HMRC site, and knowing what you will need to put aside by the deadline (if saving has not been a priority until now, naughty).
Time for a nice rest after all that, you now have a figure to divide into 12 and work out a monthly amount to squirrel away. No time like the present so get to it and set up that monthly savings standing order (if you can find anywhere to earn a decent rate that will allow access by January next year).
You may also need to pay some upfront in July, if you earn above the HMRC threshold. Otherwise, it’s usuallyJan only. Then you can actually semi enjoy Dec & Jan, huddled up with Netflix (at £5.99, affordable in bleak mid Winter), instead of running around like a headless (cold) chicken – nice.
If however, you find receipts and spreadsheets are the work of the devil incarnate, and do not want to handle your own return, give us a call – we are happy to help.
Recent Comments