The deadline for filing and payment of your self-assessment tax return is fast-approaching. 31st January 2019 might seem like a long time in the future just now, but don’t let it creep up on you and catch you out!
According to The Guardian in February this year, almost 750,000 people missed the deadline of 31st January. At a £100 penalty each, HMRC could, before appeals, potentially collect £75m in revenue. According to the annual report on their website, collections of all tax penalties and fines for the year 2016-17, came to a staggering £1.7bn!
To avoid becoming part of that statistic, there are a few basic steps you could take as a self-employed business owner, to ensure you are always ready in plenty of time to meet that deadline.
Keep your financial records up-to-date using a compliant cloud-based software package such as Quickbooks Online.
Phone apps are great for recording expenses and raising invoices on the go.
Record your mileage - this can be done on an app such as Mile-IQ.
Record payments from your clients and customers - not only will this help with your cash flow, but you can track which invoices are outstanding and need to be chased.
If you can follow these basic bookkeeping tips, your accounts are well on the way to being ready for self-assessment.
If you get to the end of the year, with the best of intentions to be ready for the filing deadline, but your expense receipts are still in a drawer/plastic bag/front of the van, it might be time to call in my professional services - get in touch for a free consultation.