A new year but no change on the tax submission front. Many people were up at 11pm on 31st January submitting their tax returns to HMRC to avoid the automatic fines for late submission.
And even more didn’t make the deadline, as they hadn’t got their paperwork in order early enough.
Although the 31st January seems like only yesterday, the next financial year ends at the beginning of April, and that’s only tomorrow!
Running a business means that your focus is on the day to day needs – ensuring you service your clients and have an income. However, leaving required submissions late can cause you severe cashflow problems, as you don’t have time to save for any tax that is due.
On 31st January many people make new year resolutions. How about this year making a financial year resolution?
“I will arrange for my returns to be completed quickly after the end of the tax year, and give myself time to arrange any payments that are due?”
If you are able to do this you will give yourself peace of mind and are able to plan. Most importantly you will not have to pay additional penalties and thus save yourself (potentially) hundreds of pounds.
So what do you need to do this?
We all know the final deadline is 31st January, but how about setting your own deadline, maybe 31st July. We have picked this date as most organisations have issued all the paperwork you may need for a tax return by this date.
So why not set this date now and target an early return, no penalties and time to plan to pay any tax due?
That covers tax returns but there are other returns that need to be done as well. Simply apply the same logic to them, give yourself time to get them done.
Come January you’ll be able to relax knowing everything is done and dusted.