Saying goodbye to 2018 and Hello to 2019 can only mean one thing for lots of self employed people or company directors – the start of the Tax Self Assessment season, when the dreaded tax return is on the horizon. With the deadline of 31st January 2019 approaching, those who are required to submit a Self Assessment tax return will be thinking about getting in some prep now and digging out their bills.
A lot of tax returns have already been ticked off lists – according to HMRC more than 10,000 Self Assessment tax returns were filed on Christmas Day & Boxing Day alone!
If you are a self employed sole trader, a partner in a business partnership or a company director, here are some things to consider when looking at your Tax Self Assessment.
10 Tips for Tax Self Assessment
- 1. It may seem like a while away now but once Midnight on 31st January 2019 comes, penalties and interest will apply to any self assessments not filed on time.
- 2. You will need your HMRC log in details – if you haven’t got them, now would be a good time to either find them or request them, likewise with NI numbers and UTR numbers. Without this information you won’t be able to file online so best to find out now if you are missing this information or not. Alternatively, ask an accountant to file it for you – we can do this for you for a modest fee, saving you the time and trouble.
- 3. If you’re making money from renting out your properties as a landlord, you’ll need to fill in a Self Assessment tax return if your property income is over £2,500 per year.
- 4. Make sure you are claiming all expenses applicable to your role, if you are not sure check with an Accountant. We can advise if you can claim for travel, PPE or home office expenses.
- 5. If you are an employee and wear a uniform, check to see if you could claim a tax allowance.
- 6. Check your mileage rates against those of HMRC, if yours fall below, you could claim a tax allowance on the difference.
- 7. Any pension contributions you have made in the last tax year need to be included too.
- 8. For those who pay higher rate tax, make sure you allow for any donations to charity you have made in the last 12 months. For example you donate £100 to charity – they claim Gift Aid to make your donation £125. You pay 40% tax so you can personally claim back £25.00 (£125 x 20%).
- 9. Don’t overlook the small payments such as parking charges, they all add up!
- 10. Remember that it’s no longer possible to pay your Self Assessment tax bill with a personal credit card, this ceased being an option in January 2018.
This is just a guide – your Self Assessment taxes depend on your individual circumstances. If you have a specific query, get in touch on 01244 400315 or email [email protected].