Getting Up To Speed With Your Tax Return

small business accounting advice

TTS

We have been stopped from going out and many of us are working from home. It could be that you have been furloughed from your work or have experienced a downturn in your workload. Of course, other tasks such as homeschooling and generally dealing with the underlying anxiety the current situation has caused will be taking some space. However, if you do have some time to spare, it’s a good time to think about your tax return for 19/20 as the tax year has only just ended.

It’s a way of using your time at home profitably.  You need to get your tax return done and at least now you may have more time instead of trying to fit it in while you’re working.  This will take the pressure off and will be one less thing to do when things return to normal – whatever that will look like.

The chancellor’s measures to support you financially in the next few months have emphasised how important it is to have filed your tax return on time.  In fact, if you haven’t filed your 18/19 tax return by 23/04/20 then you won’t be eiligible for the Self-employment Income Support Scheme. 

Also the bonus of getting it done early is that you will be able to receive a refund early if you are due one and if you owe tax you can plan now how you will pay it by 31/1/21.

small business accounting advice

Hi, I’m Anna Goodwin – Author of five books, Director, Mentor, and Trainer for Anna Goodwin Accountancy.

Basically, I take the stress out of finances – both business and personal. From running my own business and helping others to run theirs, I know it’s important to keep up to date with your figures so you can plan ahead.  Of course, now that is more important than ever!

I understand that people struggle with sorting out their tax returns. In my book ‘Stress Free Tax Returns – Be better prepared for HMRC and know what to give your accountant and when’ I give some great tips for helping you to take control.

If you’re behind with sorting out your 19/20 information, now is the time to catch up.  How great would it feel if you got ahead for the 20/21 tax year?  Less stressful for sure!  It doesn’t take long – if you set aside an hour a week to file and record then you’ll crack it!

So make a start and: 

  • Collect all your receipts and start by recording your income and expenditure.
  • Record your income and expenditure on a spreadsheet or follow the plan set out in my latest book ‘Your Business, Your numbers’.
  • Decide on what system works best for YOU! This can be manual, spreadsheets or accounting software. It might be now that if you have more time you can change your system of recording – this could be something you have been wanting to do for a long time but have never had a chance to do it.

How great would it be if you could get your tax return completed early 🙂 Fantastic!  Good luck with getting it done. Don’t be put off sorting it all out because you think you won’t be able to send the information to your accountant yet because you can’t pay their bill.  Just get it all ready and send it later.  At least you’ve done it then!

Next week, I will give you a simple guide on how to read your accounts.