Do not submit your tax return until you have ALL this important information!

Do not submit your tax return until you have ALL this important information!

 

I would say maybe 85% of my clients very often shout at me for offering my services at such low prices. I am a very affordable accountant – so much so, it has actually bit me in the bum over the last 12 months to the extent where I just had too much work on my desk! Personally, business isn’t just about a financial gain, it is about helping others.

Let’s take my lovely friend Pixie as an example. I met Pixie maybe a year or so ago. Pixie came to me as a trained bookkeeper and payroll clerk, she had decided to change directions with her career and was looking for bookkeeping and accountancy services for her new business venture. I could have very easily taken business from her that day, but I didn’t. Instead I gave her a gentle shake and told her to get on with it herself. Considering her bookkeeping requirements as well as payroll for numerous staff members I could have been £45.00 a month richer, but on moral grounds it would have been a wrong move and that really doesn’t sit well with me. We didn’t enter into any business arrangements that day but instead what we did come away with was a new friendship.

Now you might be thinking at this point ‘Mmmm what has this got to do with submitting a tax return?’ Just bear with me…

There are a lot of small business owners out there, especially mums who juggle the struggle. These businesses have fairly straight forward financials. And guess what? Submitting a tax return to HMRC is fairly straight forward too. It’s just daunting! And I completely get that.

There is absolutely no need to seek out an accountant and pay affordable prices (if you’re lucky enough to come across someone like me) or out of this world extortionate prices.

You just need a helping hand to guide you through the process, the do’s and the don’ts, the yes and the no and the final submission.

This is why I have created the ‘6 weeks to complete your tax return’. Our 6 weeks, do it yourself, complete your own tax return online course has been designed to breakdown the what can be very daunting process of preparing and submitting your tax return to HMRC into manageable, easy to action, bite size chunks.

Over the 6 weeks we will cover tax return basics, must have paperwork, sales income, business expenditure, annual adjustments and final submission.

At a cost of just £99.00 it is not to be missed. For full course content and details on how to enrol just click here!

In the meantime, I am giving you for FREE – A summary of the must have information you will need to complete your tax return in a checklist format. Yay!! Just complete the sign up form below.

Remember – Tax does not have to be taxing!!

 

Filing Tax Return Early

Time flies –  5 reasons you should file your tax return early

 

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Can you believe that we are already over 1 month into the start of the new 2017/18

tax year? The saying ‘time flies’ has never been truer. Unfortunately, that

means we are also 1 month closer to the filing deadline for our 2016/17 tax returns

and you may have already received your annual reminder from HMRC.

Tax returns dated 06 April 2016 to 05 April 2017 are due for electronic filing no later

than 31 January 2018, the penalty for late submission (up to 3 months) is currently

£100.

We are all tempted to brush our accounts and tax returns to the side whilst we

concentrate on the running of our businesses day to day… after all, it is the easy

option BUT I am sure you can agree there is always that one niggle in the back of

your mind that gets bigger and bigger as we get closer to the 31 January deadline.

Wouldn’t it be lovely to have a stress-free couple of months knowing you are all up

to date?

As a business owner, and it has taken me a long time to realise this myself BUT

sometimes we have to give ourselves a break. Instead of feeling stressed and

anxious for 9 months wondering what your tax return will be, why not do it now and

release yourself of that tension? Your mind will feel much better for it allowing you to

concentrate on more important things like business plans for future growth. I like to

think a clear mind is an exciting mind.

If that doesn’t tempt you here are a few further advantages of filing your tax returns

early

Cashflow –

So you are in a position where you do have a tax liability payable to

HMRC, by preparing and filing your tax returns sooner rather than later you are

giving yourself more time to plan, save and budget your cashflow accordingly (and

no last minute surprises). The payment deadline will remain at 31 January– It will not

trigger an earlier payment date and maybe depending on individual circumstances

you might even be able to have any tax due collected via PAYE through an adjusted

tax code (providing your tax return has been filed by 31 December).

If you are lucky enough to be due a tax refund, the sooner you file the tax return, the

sooner you will receive the amounts due, you do not have to wait until the 31

January before repayments are released. HMRC are fairly reasonable and refunds

tend to get repaid in a matter of weeks upon receipt of the tax return.

 

ivy wood, mums tax break, accountants, accounting, tax return, self assessment, tax return help, bookkeeper

Time –

By preparing and filing your tax return early you are effectively creating

yourself more time to gather all of the necessary information required instead of

rushing around last minute ploughing through draws, cupboards, piles of paper,

carrier bags, etc. There is also less time to lose important documents and forget

what happened that 1 day back in April 2016 that your accountant is now querying

with you.

It will also give your accountant more time to identify and investigate any errors and

or discrepancies within your accounting records.

Tax Credits –

If you are currently in receipt of tax credits your deadline for renewal is

31 July. Although at this date you are able to provide HMRC with estimate figures

wouldn’t it be much more efficient to be able to give them actual figures?

By providing HMRC with actual figures you can ensure you avoid the HUGE

overpayment/underpayment scenario.

It is also worthwhile remembering if you do see a sudden change in your income

throughout the tax year to inform them as this can also have an impact on your

current claim.

HMRC Enquiries –

HMRC currently have 12 months from the date you file your tax

return to raise any queries they may have. The sooner the return is filed, the sooner

this period will close. Which goes back to my initial point, an HMRC return can be straining,

the sooner the 12 month period has passed the sooner your mind can be at ease.

Of course, I’m sure everything will all be OK if you are chosen by HMRC, especially if

you have the helping hand of a reliable accountant.

So what are you waiting for? – Get in touch today to see how we can help you.

Happy New ‘Tax’ Year

Happy New ‘Tax’ Year

Hello Mums, I cannot believe how fast April has flown by. Between half term, Easter weekend and the crazy intake of tax returns I received I don’t think my feet have touched the ground.

Happy New Year

As you most probably know April 6th is the start of the new tax year.

 
If you are self-employed or are required to prepare a self-assessment for various other reasons you may have received by now a HMRC notice to complete a tax return. If you haven’t don’t panic, it will turn up sooner rather than later.

Important Filing Dates

Your 2016/17 tax return must reach HMRC and be paid in full by 31st January 2018 (if filing electronically). This deadline is brought forward to 31st October 2017 if you still like to fill out the form and send it via post.

 


Don’t forget if you miss this deadline you will have to pay an initial penalty of £100. The later you send in your return, the more penalties you are likely to pay.

 
And, of course if you are in receipt of tax credits the renewal deadline is 31 July 2017. I would always advise completing your tax return prior to this date. This means you can give HMRC actual figures instead of estimates and avoid any complications for over payment scenarios. (I had one many years ago when I was made redundant and it was a real bite in the bum).

Tax Thresholds for 2017/18

The most important question to anyone who is self-employed I’m guessing is ‘How much can I earn before I pay any tax?’ The answer for the 2017/18 tax year is as follows:

 


Personal allowance – The standard tax free personal allowance for 2017/18 is £11,500*. Any income above this up to £45,000 will be taxable at 20%.

 
National insurance class 2 – If your profits are above £6,025 class 2 NI will be payable at a flat rate of £2.85 per week. Don’t forget this is the last tax year you are required to make class 2 NI contributions!!

 
National insurance class 4 – If your profits are above £8,164 class 4 NI will be payable on profits above this rate at 9% up to £45,000 where it will then drop down to 2% for profits above the second rate.

 

*Please note there are various circumstances that might impact your individual personal allowance such as marriage allowance, income levels, etc.

 

 

If you find yourself in a bit of a panic when it comes to self-assessment. STOP, take a deep breath and get in touch. Here at Mums Tax Break HQ I understand how hard it can be juggling everything and that is why I am here to help. As crazy as it seems I actually like working with cashbooks, spreadsheets and tax returns.