Are you prepared for your tax return?

Introduction

Tax season can be a stressful and daunting time of year, for small business owners. Whie it may be tempting to put it off, as an accountant, every year I see business owners feeling stressed as the season approaches because they know deep down that rushing things and leaving it to the last minute can lead to mistakes and penalties.That’s why it makes sense to get ready for tax season right away. In this blog post, we’ll explore why now is the time to get your self-assessment tax return done, instead of waiting until the deadline of January 31st. We’ll offer tips on how to outsource your bookkeeping and accounts, why the deadline is not a target, and how it’s crucial to know your numbers to help motivate you to complete your tax return.

You don't want to be doing your tax return over the Christmas holidays

The holiday season is a hectic time, especially for small business owners who must balance work and family commitments. With the looming January 31st deadline, it's tempting to delay your tax return until January. However, waiting until the holidays to tackle it can lead to unnecessary stress. Instead, start now and enjoy a worry-free break.

The deadline is a deadline, not a target.

Many small business owners falsely believe that the filing deadline of January 31st is a "target" rather than a strict deadline. This is a misconception. The HM Revenue and Customs (HMRC) takes non-compliance very seriously, and failing to submit your tax return by the deadline can result in penalties. Get it done and off of the list as soon as you can. 

Outsource your bookkeeping so you don't need to do it.

One of the best ways to get your tax return completed now is to outsource your bookkeeping. If you don't have the time or expertise to handle this task in-house, think about getting the help of a professional bookkeeper or accountant. Outsourcing your bookkeeping can not only save you time and energy, but it can also help you stay organised and ensure your tax filings are completed accurately and on time.

Here’s the unexpected benefit

Many small businesses see the tax return as the ultimate goal, but at Sphere Accountants we know that the most important reason to get your tax return completed now rather than later is to know your numbers. It gives you time to save for your tax bill if you haven’t already (talk to me about this, I can help), and it is key to knowing your numbers. 

Your tax position reflects your business performance for a certain frame of time, and we expect you want to know how you’re performing in as near to real time as possible. Understanding your financial situation is vital in running a successful small business. By knowing your financial figures in-depth, you can make informed decisions for your business, plan for the future, and stay on top of your finances.

Conclusion

Getting your tax return done as early as possible is crucial. It not only alleviates stress, prevents errors, and avoids penalties but also provides valuable insights into your business's financial performance.

At Sphere Accountants we encourage our clients to file their tax returns as early as possible and we’d love to chat to you about how we can help you with yours. You can reach out to us by booking a discovery call or send us an email:  hello@sphereaccountants.co.uk

So why wait? Let’s get your tax return sorted now so you can move on to more exciting things.