Last Call: The 2022/23 Tax Return Deadline Is Looming
There’s a ticking time bomb at the end of this month: HMRC wants your tax returns for 2022/23 done and dusted. If you miss the deadline, there can be serious financial consequences.
To make things worse, HMRC decided now was the perfect time for a little quiet and has closed its phone lines, leaving many Self Assessment taxpayers in a jam. Not to worry, though - we’re here to help you through the labyrinth of numbers and deadlines. Let’s get into it.
What happens if you miss the tax return deadline?
Picture this: it's just past the deadline, and your tax return is still lounging on your to-do list. What’s the price for this procrastination? Firstly, you’ll be slapped with an immediate £100 fine for missing the crucial January 31st deadline for online returns.
HMRC doesn’t stop there. If your return continues to play hide and seek after three months, daily penalties of £10 start to stack up, leading to a potentially hefty sum if you continue to delay.
In short, it’s absolutely not worth skipping the deadline - you need to face your finances head-on. Thankfully, there are ways to get your return sorted even at this late stage in the game.
Why you should hire an accountant
In the whirlwind of running a business, diving into the nitty-gritty of taxes can make anyone want to bury their head in the sand. That’s why accountants exist - we’re here to help take some of the stress and confusion out of filing your tax returns.
An accountant does more than crunch numbers; they provide peace of mind. They're well-versed in tax law nuances, ensuring you're not missing out on potential savings or stepping into pitfalls. Their expertise means your returns are accurate, compliant, and optimised.
They’re an investment for your business, but by helping you to avoid costly mistakes and leverage available tax reliefs, they often pay for themselves - and it’s hard to put a price tag on peace of mind.
Action steps to speed up the process
So, now you’ve got your accountant sorted, and you’re ready to tackle the tax return - what can you do to help speed up the process? Here are some top tips to help ensure a smooth and speedy tax return filing.
Gather your documents early
Don't wait until the last minute. Start compiling all necessary documents now: invoices, receipts, bank statements, and previous tax returns. Organise them by category and date for easy access. The earlier you start, the less stressful it will be.
Digitise your records
Embrace technology by scanning or photographing paper documents. Use cloud storage to keep everything in one place for easy access. This speeds up the process for you and your accountant and ensures you have backups in case of loss or damage.
Check and double-check
Before sending anything to your accountant, review all documents for accuracy. Ensure income, expenses, and personal details are correct. An error now could mean delays later - and time is of the essence in January.
Communicate clearly and often
Keep the lines of communication open. Provide all information your accountant requests promptly and ask questions if you're unsure about anything. The better the collaboration, the quicker the process.
By taking these steps, you're speeding up the tax return process and contributing to a more accurate result. Start now, and thank yourself later.
Preparing for next tax year’s return
Once this tax season ends, it's time to look ahead and pave the way for a smoother journey next tax year so you can avoid the same rush. Here are some tips to get you started.
Get organised
Create a system for organising receipts, invoices, and statements as they come in and update it throughout the year. Use online accounting software, devise your own paper system or keep an Excel spreadsheet of your expenses - whatever you decide, this habit will save you from scrambling when the next deadline looms.
Embrace digital tools
If you haven't already, start using accounting software to track expenses and income throughout the year. Many programs sync directly with bank accounts and categorize transactions for you.
Business bank accounts also have their own nifty advantages, such as Monzo Business’ feature for automatically putting away a portion of your self-employed earnings into tax.
Schedule regular check-ins
Set quarterly dates to review your financials - especially if it’s the last thing you want to do. This prepares you for the tax return and provides valuable insights into your side hustle or company’s financial health.
Wrapping up
As the sun sets on another tax season, we hope this guide has lit the path to a timely and stress-free submission. Ready to banish tax-time blues? Contact us today, and let's make this tax return the smoothest one yet.