Worried about your tax return?

January can be a stressful time of year as small business owners and freelancers suddenly wish that this had been the year that they had kept their accounts in order. Just a little bit. But, like most years, it’s probably been much like previous ones, and you haven’t set up that great system for your receipts, moved on to (the amazing) xero to help you keep everything financial tidy-as-you-go…. and you are now sweating about the work involved in putting your personal tax return in. Most good accountants and bookeepers are submerged with work at this time of year too, so it’s really difficult to get help. But accountant Rosie Forsyth of Wilkins & Co has some words of advice on her blog that may help you, particularly if your income in 2020 has been severely affected by Covid19 disruption. Your annual tax bill is due to be paid in two parts: 31 January, and 31 July. HMRC will assume (unless you tell them otherwise - see below) that your income is much the same and will expect you to be paying 50% of last years tax (19/20). If this is not the case then she explains that you can log into your online HMRC and request a reduction of your payment on account. You can also apply to spread out your tax payments in instalments which may help your cash flow if a lump sum payment looks difficult just now.

Check out Rosie’s helpful blog here

And if 2021 could be the year that you stick to your resolution about keeping on top of your accounts throughout the year (so January 2022 is not such a scramble) then Rosie has a talk she’s going to be sharing with us on how to keep on top of things in just 15 minutes a week. She just needs to get through January and get all her clients’ tax returns submitted first.

Join our mailing list HERE to be sure to get your invite to Rosie’s (virtual) talk when we publish the date.