There’s just over a month until self employed workers will need to submit their self-assessment tax return, and pay the tax they owe.A recent survey of self-employed workers by GoSimpleTax discovered that 58% don’t know how much their next tax bill will be or have money set aside to pay for it. Almost a third (32%) say they have ‘some idea’ but more than a quarter (27%) will wait until they complete their return to find the money to pay it.Mike Parkes, Technical Director at GoSimpleTax has set out his advice to make sure you’re ready for the deadline:Get all the documentation you need togetherWhen it comes to the form itself, the key is to have everything you need to hand and ensure you’ve been collating records (i.e. receipts and invoices) properly throughout the tax year. The kind of information you’ll need, includes:
- Your UTR
- Your National Insurance number
- Information on untaxed income for the year
- Records of expenses relating to self-employment
- Any charitable or pension contributions
There are two sections you’ll need to fill out – the main one is SA100, with other supplementary pages applying for different circumstances, such as being an employee, self- employed, landlord or a foreign national.
Get ready as soon as you can
The secret to submitting your self-assessment tax return on time and correctly is to be extremely organised, ready for the impending deadline in January, and to be completely clear about what HMRC is looking for. Otherwise, the whole process can turn out to be both stressful and slightly overwhelming.This means giving yourself time to get it done, and not leave it until 10pm on January 31 where you’ll feel panicked and under pressure to get it submitted.
Do it in stages if it feels too overwhelmingThe entire process can seem complex but, take your time, use the option to fill it out in stages, save your changes and then go back to it, and ensure your house is in order throughout the tax year (as much as you can). Whatever you do, don’t leave it until 10pm on 31 January, as financial penalties can apply if you miss the midnight deadline
Don’t get caught out over Child Benefit
People may not be aware that they need to complete a return if they, or their partner have received child benefit and either party has an annual income of more than £50,000. The way the system works is that if a couple are both on salaries of £49,999 they can receive the benefit, yet if a single parent is earning £60,000, this benefit would be cancelled out by the high-income charge. People who don’t fill in their self-assessment tax return because they’re not aware of the high-income benefit charge, could be penalised by HMRC.
Don’t worry if you can’t pay everything you owe
The HMRC has useful help sheets throughout the form which can help guide you through the process.There’s also information online and using a digital tool can often simplify it too so it won’t seem so confusing once you come to submit. If in doubt, you can make your life easier with tools such as GoSimpleTax self-assessment software, as you’ll be prompted and advised when you input your earnings, which section to fill out, as well as getting an answer on what you owe and advice on the benefit of any tax reliefs you may be entitled to.
Try and plan ahead for next year if you can
If you have left it to the last minute, don’t beat yourself up over it but try and learn from it for next year. It’s easy to neglect the paperwork when you’re busy working, but you’ll thank yourself for doing it when the time comes to do next year’s self-assessment.
