This year, you’ve got more time to file your tax return, but it’s a one-off…
If you haven’t already done so, it’s time to file your 2020/21 tax return. Are you going to take it to the wire? This year, there’s an extended period until midnight on 28th February 2022 to file a return, but it’s a one-off. Next year, every indication will be a return to 31st January. Happy New Year, everyone!
The sense of panic as the self-assessment deadline approaches isn’t a pleasant feeling.
It’s also a distraction for many business owners who typically have enthusiastic plans they want to put in place straight after the Xmas break.
Make it a business goal for 2022 and start now!
Use that sinking feeling of being up against the clock and self-recrimination for having got yourself into this position! Instead, channel them into making a positive difference to your business and your enjoyment of next Christmas.
Get organised
One of the most time-consuming aspects of putting a self-assessment tax return together is gathering all the information.
Set up, store and maintain your records, both paperwork and digital files, and keep them regularly up to date. It makes everyone’s job easier and saves valuable time.
The same goes for your personal tax matters. You wouldn’t be the first person to battle through the business sections of the tax return, only to be floored by the personal finances section. Pension contributions, bank interest, maintenance payments, student loans, furlough payments; can be as involved as business matters.
Many people are too busy or are just not inclined, however well-meaning, to stick to a routine of recording and organising their business and personal finances.
Don’t panic, you’re not alone!
You can explore options to let software or someone else take some of the strain, but again, you need to act soon!
Make friends with technology
There’s a vast choice of software, phone apps and other gizmos to help you keep on top of capturing and organising your business expenditure. For example, if you’re out and about, it could be helpful to use phone apps that scan receipts and send them to synchronised folders on your phone and your business devices.
Software packages range from very detailed and complex systems to much more fundamental. Some have ‘free’ versions that offer the basics but no-frills. However, some provide a handy level of analysis and reporting.
You can find examples of such packages on the HMRC website:
HMRC does not endorse any products but has vetted them for authenticity.
Outsource to a professional bookkeeper
If you want advice on getting on top of things, a good first move could be to talk to a bookkeeper. They will take you through the process, and it may be helpful to use the same software that they do, so all your information is available to them in real-time. A reputable bookkeeper will discuss what level of service you need. Depending on their level of qualification, bookkeepers can deal with most matters, including some that you might think only an accountant can handle.
Bookkeepers are often employed in a firm of accountants as a stand-alone service or are self-employed.
Rackhams Accountants offers efficient and practical bookkeeping support. We can take care of:
- Management accounts
- VAT returns
- Key performance indicators
- End of year accounts
- Estimated tax liabilities
Engage and accountant
Of course, suppose you engage a professional accountant, especially a well-established firm. In our case, as with others, we have the scale and experience to deploy whatever resources you need as you need them.
Most businesses have periods of higher financial activity than others, and an accountancy firm can respond to your peaks and troughs. They can handle the day-to-day, the month-end, the quarterly VAT return, the six-monthly accounts and, of course, the end-of-year and tax returns and anything else that crops up.
Rackhams offers a three-point guarantee:
Rackhams Accountants Three-Point Guarantee
Risk-free – meet every HMRC deadline without penalties
Fixed fee contract – complete and transparent pricing structure
Unlimited support – by phone and email. Enquiries answered within 24-hours
Let HMRC help you to help them
HMRC used to have a reputation for spreading fear and dread. Whilst we’re not saying they have gone ‘soft’, they have, in recent years, become far more engaging. The HMRC website is user-friendly, written in plain language and explains each step clearly.
https://www.hmrc.gov.uk/self-assessment
It also has excellent help sections and guides for every aspect of financial affairs. In addition, you can get explanations via informative webinars, short YouTube videos, or you can even pick up the phone!
Next years’ self-assessment tax return is big, but it needn’t be scary.
Book a free, no-obligation consultation to talk to us about your tax affairs and how you can avoid a last-minute panic or a nasty HMRC fine on 01482 631 700.
Download a copy of our free HMRC Safety Checklist here:
https://www.rackhamsaccountants.co.uk/wp-content/uploads/2021/12/Rackmans-Checklist-Final.pdf
