The Self Assessment tax return is something many business owners procrastinate with, year after year. Any accountant will recommend you file it sooner, and this year, we recommend submitting it as soon as possible. With the current lockdown – and the likely impact it’s having on your finances – there’s never been a better time to get this daunting and complex task done and dusted.
Why exactly? Let us explain…
Take advantage of time
If you have less or no work on during lockdown, you’ve probably got more time on your hands. The plus side is you now finally have an opportunity to work on your business – and this includes sorting out your finances.
Starting your tax return now means you have plenty of time to hunt down receipts, calculate relief for things like mileage and discuss any other queries or potential tax breaks with your accountant. You’ll also have the chance to iron out any issues.
Prepare for no time
On a similar note, it’s really not best to delay the tax return. Once lockdown ends, it may be that business picks up and that you have significantly less time than you would have had usually.
More than 700,000 taxpayers filed on deadline day for the 2018/19 tax return. And, if you’re faced with any technical or accounting issues, you could find yourself in HMRC’s queue and many accountants will be bombarded with their existing clients. The last thing you want is stress and regret come January, knowing you could have sorted the Self Assessment months before.
Save for the January deadline
It’s impossible to save for your Self Assessment tax bill if you don’t know how much you owe. And if you don’t have a number, how can you be certain you have enough to pay HMRC in January? By doing the Self Assessment now, you’ll be aware of your tax obligations and can take any necessary steps to ensure you have sufficient funds.
This is especially important if you’ve opted to take advantage of HMRC’s deferral for the second payment on account in July, as you’ll have more to pay in January. So, whilst this will help cash flow in the present, you need to remember that you’ll have even more to save for the future.
Let’s sort your Self Assessment Tax Return today
Ultimately, by sorting out your Self Assessment sooner, you’ll have plenty of time to save and be able to tick it off your to-do list. And you can finally focus on your business.
Here at BCA accountants, we support businesses with their tax returns so they can put their attention where it’s needed. Plus, we make the process as simple as can be – you won’t find us talking in complicated jargon. We also offer a full range of accounting services if your requirements go beyond the tax return, and we use cloud accounting software.
Many SMEs have reaped the rewards of our proactive service, so why not get in touch? Our team will work closely with you to get you the best results – even if we have to do so at a distance. We use Zoom Video Conferencing so you can still talk to us about your concerns, and we can always be there to support you.