It will soon be time for you to file your tax return online. While we were told that we’d have to use the Making Tax Digital scheme from April 2019, HMRC has delayed it until after Brexit.
For now, this means that none of us has to file our accounts using this method just yet. However, if you want to file your taxes accurately you’ll appreciate a few tips. These tips could prove to be beneficial now and when Making Tax Digital comes into fruition.
Get all your Paperwork Together
When you’re about to file your taxes the last thing you’ll want to do is hunt for your P45 or P60. The best way for you to get organised is to make sure you have everything to hand before you start. In addition to having your P45 or P60, you’ll also need to have a copy of your receipts with you so you can record your business expenses.
Make sure you also have details of any interest that you have earned from your bank or building society accounts.
Consider Hiring an Accountant
If you’re not good with numbers or you’re struggling for time then you should consider hiring an accountant. Please note that you will have to pay to use the services of an accountant. If you can get away without hiring an accountant you could save yourself a lot of money.
Use the Internet to your Advantage
The internet is here to be used. It can offer you a wealth of information about all kinds of business-related topics but it can also help you do your tax returns. In the UK you will even find online tax tools that can be used to your advantage. (Note: if you’re filing taxes in the US there are also some specific online tax tools to check out.) You don’t have to struggle to do your taxes, there is so much helpful information out there. Even those who have always filed a paper tax return can learn how to fill their taxes online and without much trouble.
Make a Note of your Income and Expenditures
Remember how hard it was to do your tax return last year because you couldn’t work out how much you earned? Now’s the time to do things properly. Make a note each time you are paid and each time you pay out for something. Note who the money is from or who it’s going to and why. Doing this will help you to have a clear account of how well your business is doing and how much you’ve earned in the financial year.
Save Money so you can Pay your Taxes
Lastly, you should consider opening an account so you can save money. This money will go towards the payment of any taxes. Save as much money as you can so that you’re not left to pay a huge bill at the end of the tax year. Any money you have left over can go towards next year’s tax bill.
When it comes to filing your taxes you can make things easier. Simply get all your paperwork together, consider hiring an accountant and use the internet. After a while, you will soon find that doing your taxes are a lot less arduous.