The self assessment deadline is quickly approaching. If you are self employed or a company director you are required to have your self assessment filed by 31st January or face HMRC consequences. It is a stressful period for many people and that is why we wanted to help. In this article we will provide you with five tips to filing out your self assessment forms.
If you were preparing to file your self assessment on paper, you have already miss your chance. The deadline for that was on the 31st of October last year. However, you can still register for your self assessment online. Not only does this give you a second chance to file it, but it is also a lot easier and quicker. So even if you are not expected to file your self assessment by this January, using the online registration form will save you time.
Get the right paperwork together
Before you file your self assessment, it is important you get all the necessary paperwork. If you are currently employed while also work as a self employed individual, you will need a copy of your P60. However, if you and worked in multiple places during the last tax year, you would of received a P45 form for each employment. The P45 and P60 forms will show the amount of money you earned during the tax period you were work for the company. You may also need a P11D for P9D documents if you received any benefits or expenses payments during the last tax period.
Finally, if you received any dividends from investments or any other income during the last tax period, get a copy of the banks statements showing the income you received.
Avoid calling HMRC
Calling HMRC will provide you with unneeded amount of stress and a large phone bill. The BBC website reported that the cost for a mobile user to contact HMRC is forty-one pence per minute, with the average wait time being ten minutes. That phone bill amounts before you even get to speak to an adviser. Instead, the HMRC website is filled with enough information for you to find your answer. The website is even has with videos answering the most common questions relating to self assessment.
Learn from your mistakes
If you are rushing to get your paperwork in the order for this self assessment tax return, then take this opportunity to be one step ahead for next year. Once you have finished collecting all the necessary paperwork for this self assessment, start gathering documents for the next one. Create a spreadsheet which you will mark down all of your income from various sources and the tax you have paid.
It's greatly advised to create a savings account which you put a percentage of money earned through yourself employment away (or any other form of income outside of standard employment). Typically you find if you put just ten percentage away from each amount of income, you will have enough to pay for your tax bill. Furthermore, you may find you have money left over which you can reinvest in your business. This is more likely to occur if you follow our final piece of advice.
Use an accountant
An accountant will do their best to save you and your business money, and at the same time manage your taxes correctly and efficiently. Many businesses find that the accountant they hire to do their taxes are essentially payming for themselves in the amount of money they save for their client and their business.
At PNGFormation we suggest only the best accountants for our clients and are proud of the feedback we receive from the happy client. If you are looking for more advice on how to file your self assessment or where to find the right accountant for your business, contact us here today.