The Practical Guide to Limited Company Tax
If you have chosen to operate your business as a limited com...
By Lynne Gowers on 13th January 2017
“I love deadlines. I like the whooshing sound they make as they fly by.”
Don’t let the self assessment deadline whoosh by! If you don’t file your personal tax return by midnight on 31st January, you will immediately be hit with a £100 penalty with a further £10 added for every day after that up to 90 days, plus interest. You may be able to appeal the penalty, but it will take you time and effort, and there is no guarantee you will be successful.
Yet a huge number of people still leave it to the last minute. According to HMRC the busiest online filing days in the 2016 season were 30th and 31st January with close to 1 million returns filed over those two days.
You still have a couple of weeks left, so if you are yet to file, here are our top 5 tips for making the process as stress-free as possible.
You won’t be able to submit your tax return online unless you have registered with HMRC and have a login for the Government Gateway. You will also need your Unique Tax Reference (UTR). This is a 10-digit number which will be on your self assessment paperwork from HMRC. What to do if you can’t find your UTR.
Before you start, make sure you have all the paperwork you need to hand. This includes records of all your personal and business income and expenditure including a P60 or P45, P11D, invoices, dividend vouchers, bank statements and receipts.
Now to work your way through the form. Make sure you complete every section correctly and leave time to thoroughly check every part of your self assessment before you hit submit. Even a simple mistake, such as not ticking the box at the end to confirm everything is correct, could result in your return being rejected and HMRC imposing a penalty.
If you have spent hours tracking down paperwork or worrying how you are going to pay your tax bill, take steps now to avoid the same headaches next year. Get organised! Keep your financial records up to date – you can do it on paper, digitally or using specialist accounting software (like the Boox app) Put bank statements, bills and important forms in a file so you can locate them easily. You may also find it useful to open a specific savings account and regularly deposit a portion of your income to cover your tax bill.
If the thought of doing your self assessment is filling you with dread, get in touch this week and our dedicated team will help you file on time.
Our guide to choosing the right accounting software walks you through the market leaders to help you choose the right platform for your business
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