3 Tips for Self Assessment Tax Returns

We are in the final month where tax returns are due and, as I recently helped someone submit their self assessment for their self-employed business, I thought I would leverage my time by sharing my top 3 tips to help all those who have been putting it off:
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1. Keep a record:
   • It doesn't take long but often forgotten, keep a track record of income and expenditure throughout the year as you go and it will save you time come January. 
   • If you do not want to spend out on software such as xero or quickbooks (£10-£30 per month - and essential if reporting on VAT), then keep a simple spreadsheet tracking income and expenses for your self-employed business (and employment if you are employed)
   • Also keep track of charitable gift-aid donations, interest statements, pension contributions etc and keep any property income/expenditure separate
2. Just do it:
   • For a simple tax return it doesn't take long (it took me 30 minutes to tally up and help submit their self assessment return)
   • You do not have to pay your tax liability as soon as you submit giving you plenty of time to plan to pay
   • Feel less pressure! Around half of tax returns are submitted in the last month, not knowing their tax liability until then – don’t let this be you
3. Make it simpler, use:
   • A different bank account for only business transactions (paying yourself monthly)
   • The HMRC app to help estimate your tax liability
   • Evernote, a free app to keep notes and records of invoices and bills you collect (if you do not opt for bookkeeping software)

I hope that helps.
 
Have you submitted yours yet?
 
Additionally, for Life Leverage Online Masterclass members, you will see a new training video showing you the step by step process of submitting a self assessment return. So if you have a simple tax return to submit, take the stress out of it and follow the video.