I would urge you now to start planning for your next tax return. Don’t leave it to the last minute and avoid all that last minute stress.
Recent figures from Her Majesty’s Revenue and Customs (HMRC) show that over 93% of people who were required to submit a self–assessment tax return did so by the closing date of the 31st January.
From those who completed on time, over 700,000 left it to the last minute by completing on the last possible day. Those who missed the deadline altogether faced an automatic fine of £100.
I am sure we have all viewed television programmes or read articles about getting your home decluttered and in order. Well, we need to do the same with our tax return. Being organised will help your financial as well as your emotional wellbeing.
Do you need to file a tax return by the end of January?
The chances are that if you are self-employed, a higher rate taxpayer or own rental property then you should be completing a tax return. The best way to find out is to go to the GOV.UK website.“Check if you need to send a Self-Assessment tax return” and complete the online assessment.
- Get your paperwork together
- You need to know what your Unique Taxpayer Reference number (UTR) is
- Keep any letters from the HMRC.
- If you are self-employed you will need accurate records of invoices and receipts
- Have a record of your current and savings accounts statements
- If you have not already opened an online HMRC self-assessment account you will need to do so. If you have already done this remember to have the login details safely stored.
File before the end of May.
Next year’s tax return can be completed as soon as the new tax year starts on the 6th of April.
Although you have until 31st January to make your return you do not need to wait that long. Waiting a couple of months for up to date bank statements to come through is all that is needed. Remember, the sooner you start the more time you will have to find solutions to any problems you may come across.
Submitting an early tax return will not affect the payment dates for your tax bill.
How will you budget for your tax bill?
The sooner you complete and submit your self-assessment, the sooner HMRC will calculate how much you owe. When you know how much and when you have to pay it, you can start budgeting.
Above all, if you are worried about being able to pay your tax bill you should contact HMRC as soon as possible.
How Anstee & Co can help you with your tax return planning.
We are a firm of Independent Financial Advisers (IFA’s). This means that the advice we give is unbiased. We look at the financial options open to you from “the whole of market”.
As part of our role as financial planners, we will always be looking at ways to reduce your tax liability. This may be by using Individual Savings Accounts (ISA’s), or more complexed Inheritance Tax Planning (IHT).
We have offices located at-
- Kettering, Northamptonshire
- Birmingham, Snow Hill Queensway
- London, Pall Mall
- Stamford, Lincolnshire
Additional we have financial planners who live and make use of meeting rooms in-
- Bedford, Bedfordshire
- Droitwich, Worcestershire
- Market Harborough, Leicestershire
- Northampton, Towcester, and Wellingborough in Northamptonshire.