It can be a worry if you are not sure if you need to submit a tax return and as a rule of thumb the following criteria apply:
-You are self-employed and earned more then £1000
-You are a partner in a partnership
-You have un-taxed income such as; money from renting out a property, tips and commissions, income from saving, investments and dividends or foreign income.
-You may need to prove that you are self-employed to access maternity allowance or tax-free childcare.
-If you or your partners income is over £50,000 you may be liable to the high income child benefit charge so may need to send one.
If you still aren't sure if the following applies please click here to see if you do need to complete one.
Once you have established that you need to complete a tax return, keep good records. This can save so much time and stress when the deadline is drawing closer. Tidal Bookkeeping Cornwall recommends that you submit your tax return as early as possible. It can feel like the last thing that you want to do, especially when the official deadline is months away, but it can actually help you plan more efficiently, especially if your tax bill is bigger then expected. You don't actually have to pay your tax bill until the 31st January and you can set up a monthly standing order to make this more manageable. By doing this you will actually save a lot of stress, especially if you have reached the profit level where you have to make payments on account.
Payments on account are devised to help spread out your tax bill, but the first one can be hard to pay - this is where again forward planning can help you manage this. A payment on account is where you pay your tax bill in two installments. The first is due on 31st Jan and another on the 31st July. This is why it is so important to plan effectively.
Separate your personal and business transactions. Lots of people get themselves in a mess by mixing the two. It can take a lot longer to complete your return if you have to unravel what you have done. Get into good practices right from the beginning. Good habits really do go a long way when it comes to your tax return.
If you have looked at this and know that you need to complete a personal tax return but are unsure what to do next or unsure what expenses are allowable consider outsourcing. Using a professional service, like Tidal Bookkeeping Cornwall, can give you peace of mind. You will know that your tax return will be submitted in a timely and accurate fashion. Interested to find out more? Please call 07028 676307 or email us at firstname.lastname@example.org.
The information featured in this article is for guidance only, no liability is accepted for the opinions it contains.