Do you leave your self-assessment until January? Stop leaving it last minute and utilise time and resources by planning ahead and submitting early. By planning ahead, you can avoid penalties and fines as well having peace of mind. Planning ahead could also help maximise the use of basic rate band to also reduce the tax payable.
Why plan ahead
HMRC is encouraging customers to plan ahead to give themselves the best chance to complete their Self-Assessment on time. Customers who file early will benefit from knowing what they owe, allowing them to budget and pay at a time that suits them. If customers are due a refund, they could get it back quicker. By doing your accounts early from or near your year end, you have at least 9 months to calculate your tax liability and be able to plan and budget to pay your tax, which in turn helps improve your operating cash flow.
Deadlines and requirements
It’s important to know the key dates for submissions and deadlines for your next submissions. Here’s few to remember:
o Get registered for self-assessment by 5th October 2023
o Paper tax returns – 31st October 2023
o Online tax returns – 31st January 2024
o Previous tax obligations – 31st January 2024
Deductions
Deduction and tax credits are vital for your tax returns. Ensuring your deductions are correct and included, is another great way to make you are not overpaying your tax. These include:
o Office supplies and equipment
o Travel expenses and business mileage
o Marketing and advertising
o Staff training
You can also receive tax credits for any valid research and development you have invested in over the tax period so its important to keep track of this throughout the year.
Pension Contributions
Pension contributions can be used as another great tool to reduce your overall tax liability and boost your savings for the future. Pension contributions are tax deductible meaning they can reduce your overall taxable income. For more details go to see our links below in our further information section.
Remember, submitting your accounts or self-assessment early, doesn’t mean you have to pay your tax liability early, the same due dates apply.