For Freelancers and small business owners, tax season can be a stressful and daunting time of year. It makes sense that you’d rather not think about it, but as a bookkeeper, every year I see business owners feeling the stress as the season approaches because they know deep down that rushing things and leaving it to the last minute could lead to mistakes and penalties.
In this blog we'll explore why now is the time to get your self-assessment tax return done, instead of waiting until the deadline of 31st January.
You don't want to be doing your tax return over the holidays
It's no secret that the holidays are a busy time of year - especially for small business owners. With the added pressure of balancing work and family commitments, it's easy to put off sending your tax return until January. However, with the deadline of January 31st fast-approaching, don't let yourself end up cramming your tax return in over the holiday period. Instead, tackle it now and enjoy a stress-free break.
The deadline is a Deadline, not a Target
Many believe (falsely) that the filing deadline of 31st January, is a ''target'' rather than a firm deadline. This couldn't be further from the truth. The HMRC (HM Revenue & Customs) takes non-compliance very seriously, and failing to submit your return by the deadline could result in a fine.
Get it done and off the list, as soon as you can.
The unexpected benefit
Many small businesses see the tax return as the ultimate goal, but here at AccountIt-4u we believe that the most important reason to get your tax return completed now rather than later is to know your numbers.
It gives you time to save for your tax bill if you haven’t already (want to know how, drop me an email), and it is key to knowing your numbers.
Your tax position reflects your business performance for a certain frame of time, and we expect you want to know how you’re performing in as near to real time as possible. Understanding your financial situation is vital in running a successful small business. By knowing your financial figures in-depth, you can make informed decisions for your business, plan for the future, and stay on top of your finances.
Outsource your bookkeeping
One of the best ways to get your tax return completed now is to outsource your bookkeeping. If you don't have the time or expertise to handle this task in-house, think about getting he help of a professional bookkeeper or accountant.
Outsourcing your bookkeeping can not only save you time and energy, but it can also help you stay organised and ensure your tax filings are completed accurately and on time.
So are you ready for your tax return?
To summarize, getting your tax return done as early as possible is crucial. Not only does it avoid the unnecessary stress, mistakes and penalties but it means you have feedback on how your business is doing.
So I encourage you all to file you tax return as early as possible, so that you can enjoy the holiday period without it being at the back of your mind, know how much tax you owe so you can plan how to pay it by the 31st January and of course know those numbers and how close you are to ticking of the next goal on that vision board.
Next step ..
Not sure where to start with your return or started and feel confused , have fallen into the ''google rabbit hole'' looking for support,
I now offer a Support Hour service, - an hour of support to help you tackle that one problem that is sending you batty - together we can work through your issue and develop an easy action plan to help you continue.
There's also an option to have a follow-up/check in call to for the additional accountability.
Click here: Avoid the the rabbit hole
Not ready to outsource yet
Bookmark this blog or follow me over on Instagram or Linkedin for bookkeeping tips and cashflow strategies.
If you're not a fan of social media, signup to my email newsletter to receive them direct to your inbox.
Signup here Newsletter