Navigating Tax Season Stress – Proven Strategies

Tax returns are always a headache to deal with, and the pressure to get them right in order to avoid fines from HMRC is intense. It is your responsibility to ensure you are paying the right tax, and if you miss important deadlines you could find yourself having to pay fees. This can add a lot of extra stress to business owners, so we have put together some tips on how to navigate tax season in order to reduce this pressure.

Make sure the deadlines are in your calendar

With tax returns there are multiple deadlines that you need to be aware of, so keep a note of these somewhere safe for the next tax year. Usually, you have 6 months from the end of the tax year to register for the first time, until the end of October to send your paper return, and then until the end of the following January to fill your return online and pay your bill. If you are making advance payments before your bill, there is another payment deadline in July. For the tax year 23/24, the dates are as follows:

• Register by 5th October 2023
• Submit paper return – by midnight 31st October 2023
• Submit online return – by midnight 31st January 2024
• Pay the tax you owe – by midnight 31st January 2024
• Make advance payments for the following tax year bill – by midnight 31st July 2024

Keep receipts

Any accountant will express the importance of keeping receipts for any business-related purchase. This is because expenses are a way of bringing your tax bill down, so having the receipts makes it easier to calculate the final amount. There are lots of different types of expenses that you can claim, which your accountant will be able to run through in further detail.

If you are self-employed with a turnover greater than £85,000, you will need to break down your expenses into different categories. HMRC may ask to see your receipts for these, so make sure you keep them safe throughout the year.

Take your time to submit your tax return

Filling out a tax return yourself is a time-consuming process that can go wrong quite quickly. Don’t rush your tax return as this is when mistakes often happen. Give yourself plenty of time to fill out your tax return, and check it over several times before hitting that final submit button. Check all the details are correct, and triple-check all your calculations too.

Make a note of how much you need to pay and when

Paying your tax bill isn’t just about making the payments at the deadlines we have listed above. Your bill may include more than one payment, for example, you may need to submit a balancing payment (the amount of tax you owe for the previous year) as well as a payment on account. If your bill is over £1,000 you will be required to pay on account towards next year’s bill. The only time this doesn’t happen is when you have already paid 80% of your bill. See how confusing this can get?

Seek professional assistance

Even if you don’t have a complex tax return to complete, getting professional assistance is always a good idea. A qualified, experienced accountant will make sure you are not only following the law correctly but also will be able to help maximise your credits and deductions, thus reducing your overall tax bill.

With common tax problems such as constantly changing tax rules and incomplete documentation, it can be really hard to keep on top of your tax return while trying to run a successful business. With Wright Vigar on your team, we can provide a business & corporate tax planning service to help guide you through the minefield that is your tax return. Get in touch to find out more about how we can make the tax reason less stressful for you.