Herald - Issue 416

Page 62 • The HERALD • 9th December 2021 v THE HERALD - INDEPENDENT AND PROUD OF IT v Building Plans & Estimating Building Plans for Planning & Building Regulation approval Builders Estimating Service Free initial meeting and estimate CAD drawings produced on latest software Please call Bob on 07795 692060 Email abbott.bob@sky.com ASK A PROFESSIONAL The Top Six Do’s and Don’ts Every Small Businesses Needs to be Aware of When Doing A Tax Return Advice from Twyla Verhelst, Head of the FreshBooks’ Accountant Channel A tax return can be a long, complicated and draining process, especially if you’re unsure what level of tax you should be paying. With a xed deadline looming it’s no surprise that many small business owners can end up rushing the process and inadvertently make mistakes, especially during the testing times of a global pandemic. To illustrate this point, recent research by GoSimpleTax revealed 46% of sole traders have admitted that they thought they wouldn’t have to include Coronavirus- related grants in any tax returns. In order to help small businesses to try and avoid these kinds of errors, Twyla Verhelst, Head of the FreshBooks’ Accountant Channel, has shared her top six do’s and don’ts when it comes to submitting a Self- Assessment tax return. is straight-talking but important advice should help to make the whole process easier and simpler. 1. Do move your tax return online Getting prepared for tax season can be a stressful time - for example, you may have forgotten an important expense that you needed to claim before you submit your return. When business is busy, save yourself some time and move tax returns online. Not only will this keep things organised and in one place, but you can start your tax return as early as possible and revisit it later in order to complete the submission before the deadline. is means you can spend less time worrying and more time running your business. 2. Don’t leave it until the last minute Make sure you give yourself enough time before the end date to submit your tax return as this will avoid the submission being rushed and helps prevent any potential mistakes being made. Make a note of the two important Self- Assessment tax return deadlines on your phone and set reminders to ensure you don’t forget them. ey are: • 31st October following the end of the tax year for a paper return • 31st January following the end of the tax year for an online return 3. Do start early You can start as early as you want to when it comes to ling your tax return and it’s something every self-employed/ small business owner should consider doing. Starting early ensures mistakes can be spotted sooner and any queries can be raised well in advance. When the previous tax year has nished on the 5th April, you can start making your preparations and get organised - you can start by jotting out a list of tasks you need to complete before you can start your tax return. Set yourself weekly goals or targets to keep yourself on track. 4. Don’t manually track your expenses Manually tracking your own expenses is not only time consuming but it’s an activity that can result in a lot of mistakes being made. Save yourself the time by moving your tax return online. is online system means you can connect your bank to your online accountancy so ware and this will help track your spending and automatically import the expenses you need to claim. 5. Do create a checklist of important information When you’re busy it can be really easy to rush a tax return and make a mistake. Having a checklist to hand when submitting your tax return can not only be a time- saver but can also help to avoid any major mistakes. Below is a checklist here to help you: • Unique Taxpayer Reference (UTR) number (you need to register for one if you’ve not completed a self-assessment before). • National Insurance number. • Details of all your income; for example if you also have rental income or have earned bank/building society interest or have received dividend payments. • Records of relevant business expenses. • If you’re picking up freelance projects on the side and you’re employed, you’ll also need your P60. 6. Don’t sit and worry If you’re unsure about what to include in your tax return or have more general concerns about the whole process, the best thing to do is not worry. FreshBooks have a range of guides and tips to help you with your tax return and make the process as stress-free as possible. Verhelst states: “Accurate tax returns are critical and are often the most time- consuming procedure facing small businesses. Moreover, if they end up being rushed, mistakes can be made which can potentially have serious consequences for small business owners. Having a clear, streamlined and organised process in place should transform this task, so you can then follow the same procedure every time. Take the time to have a clear checklist, start procedures early and get organised. It’s useful to get online accounting software in place as this will help to relieve any unnecessary stress by ensuring that you record everything digitally rather than on paper.” To find out more information or advice on invoicing, please visit the FreshBooks blog: www. freshbooks.com/blog for tips and tricks.