The End of the Tax Year: Are you prepared?
Five Important Points to Consider
That’s right, it’s that time of year again. The end of tax year deadline is upon us. Not to worry though, The Buxton Partnership is here to help. So, what do you need to consider?
Do you need an accountant to do your self-assessment?
The answer is of course, yes. It is the only way you can be 100% sure your self-assessment is completed correctly and that you are claiming expenses correctly. However, a straightforward sole trader could be very capable of doing it themselves, but it does require a great deal of organisation. Additionally, the cost of you doing it might seem great on the surface; after all, it is free this way. But, don’t forget it takes a lot of work and time, which adds to the opportunity cost of you not working on your business. You need to consider whether it would be more cost-effective to hire an accountant or do it yourself.
Do you need accountancy software?
Often not, though more often yes. For a small to medium-sized business, it is often a cost that cannot be spared but it will streamline your business and potentially save you money. Quite often a spreadsheet would be sufficient; it helps keep your income and expenses separate and provides an easy reference to refer back to a later date. Here at The Buxton Partnership, we have excellent accountancy software that can be relied upon for all your accountancy needs. It will dramatically reduce the rate of errors and reports and analyses are fully automated. The Buxton Partnership is here if or when you need us.
What should you do with all your receipts?
Once you have either entered them into your spreadsheet or your chosen accountant is finished with them, you have two options: file them (in a sensible order!) or scan them in and save them in a folder on your PC. This would be our recommendation.
Do you know what you can claim for, and more importantly, what you can’t claim for?
This is paramount for two reasons. First of all, you need to make sure you claim for things that you are eligible for, for example, mileage and use of the home. This reduces your profit and thus reduced your tax liability. Secondly, you need to ensure you aren’t claiming for anything you’re not supposed to. This has the potential to result in a tax bill, fines and interest if you are inspected. Again, the only way you can be as sure as possible everything is in order and done correctly is through outsourcing to an accountant, after all, they are the specialists.
When does it need to be done by?
If you are giving it to an accountant to do for you, it is important you send them all the information with ample time for it to be processed before the deadline. Remember, this is one of the busiest times of the year for accountants. Furthermore, some accountants will charge a premium for contacting them late!
Deadlines: Each tax year runs from 6 April to 5 April. A paper return must be submitted by 31st October and if you file online the deadline is 31 January. If you have missed your deadline and need help, contact The Buxton Partnership now.
If you are doing it yourself the same advice is relevant – get it done as soon as possible.
That’s it, our five things you should consider. The Buxton Partnership hopes this blog was of great help. We love to have strong relationships with our clients, so, if you want any help with your Self-Assessment or End of Tax Year Planning, feel free to contact us.