Filing Your Tax Return- A Guide
Filing your tax return:
Being an early bird can really help reduce your stress levels, giving you more time to just get on with your business and your life.
Here at Pro Active we have put together a short guide on tax returns if you want to complete your own.
If after watching our video you feel more comfortable with completing your tax return, then our job is done. However if you need some help and want to see where we can help you then contact us we’d love to hear from you..
Our Guide to completing a tax return includes:
1. Who needs to complete one?
2. Key information you need to be able to complete the return
3. Some of the thing’s businesses can claim for
4. Key dates and paying the tax
In the beginning….
Income tax is worked out by adding up all your income. You then need to take off any costs, reliefs and allowances, then you can figure out your initial tax bill. If some tax has already been on this income, then the amount to pay will come down (sometimes you may even receive a refund!)
Before starting your return
Gather all the information needed. This will really make your life easier.
If you don’t have backing documentation or evidence for the information in our tax return, in some circumstances reasonable estimates can be made.
Self Employed: What can be claimed?
The general rule is that any costs claimed must be for business purposes, i.e. ‘wholly and exclusively’ for the business.
Shared expenses are where costs are a mix of personal and business e.g. mobile phones and computers. By concession, HMRC allow the self-employed to claim a business proportion,
N.B. This concession does not apply to companies
If you need to complete a tax return, then you need to register with HMRC by the 5th of October in your businesses second tax year. .
Paper tax returns are still allowed. However please note these must be submitted by midnight 31st October 2019.
The deadline for filing tax returns online is 31st January 2020.
Inability to pay
The situation may arise where you can’t pay your tax on time.
If this happens, please avoid the ostrich stance, and don’t delay sending in your tax return.
Submit your tax return; see what you can afford, and then contact HMRC. Their debt management department will discuss timings to pay.
We hope you’ve found this blog and our video useful and good luck if you are going to submit your own tax return.
However if it feels too daunting or you’d rather spend your much deserved time on other things contact us and we can complete it for you.
We can have a cup of (virtual or real) coffee, biscuit and a chat to see how we can help you.