New year, new tax deadline

We get it, taxes are the last thing you want to think about at the start of a new year. But the deadline for filing your tax self assessment online is 31 January. Late filing could mean a penalty of £100 or more. And the sooner you get it done, the sooner you can move on to the more exciting plans for your business.

Here’s a handy guide to help this year, and some tips for preparing for next year.

The 31 January is the final date you can submit your online self assessment tax return for the tax year that ended on 5 April the previous year. For paper returns the deadline is 31 October for the tax year that ended 5 April the same year.

The self assessment system can be used by sole traders, partnerships and limited company owners who pay tax through the personal tax system.

Details on who needs to complete a self assessment tax return can be found on the HMRC (His Majesty’s Revenue & Customs) website. 

If you’ve set up a new business, or you haven’t filed before, you can get to know the system and register for self assessment.

Gather your financial information

To complete your tax return, you’ll need to gather the relevant financial documents from the tax year. For example:

• income details – you’ll need to declare all sources of income. Including business income, freelance earnings, rental income and any other taxable income
• business expenses – keep track of all business-related expenses. For example, office supplies, utility bills and travel expenses. Claiming allowable expenses will reduce your taxable income, and can reduce the amount you owe
• bank statements – you can use these records of your transactions to cross-check against your income and expenses.
   

Top tip – keep this stuff organised and up to date during the year to avoid panic when it’s time to complete your return.

Get help

If you’re unsure, or if your financial situation is complex, you can get help from an accountant or tax adviser. They can make sure you complete your return correctly and on time, saving you from costly errors. 

Complete your self assessment online

This avoids the hassle of completing and posting paper forms. It has quicker processing times. There’s plenty of help and guidance on the HMRC website, and their YouTube channel.

If you can’t do it online, you can download or request forms. There’s plenty of help and guidance for completing paper forms as well. 
 

Top tip – take a few extra minutes. Check all your information for errors or anything you might have left out. Mistakes can cause delays, penalties and headaches.

Pay what you owe

Once you’ve submitted your return, you’ll know how much tax you owe. You should pay by 31 January to avoid interest and penalties. There are lots of ways to pay, including by:

• Direct Debit
• bank transfer online or by phone
• debit or credit card
• cheque through the post.
   

If you can’t pay your bill in full and on time contact HMRC to discuss your options. For example, you might be able to agree on a payment plan.

We hope this helps take some of the stress out of the process.

Remember that preparation is key. Make it your new year’s resolution to keep your financial information organised. Trust us, it’ll be a whole lot easier to submit and pay your tax return on time and avoid penalties. 

Check out our support page for more practical content to help with your business day to day.