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92% of Self Assessments filed by January 31st Deadline

92% of Self Assessments were filed before the January 31st, 2016 deadline (2014/2015 Tax year). Reminder letter fr 3528836b

However, out of those, 385,000 were submitted on the very last day and around 513,000 were completed, just two days before the deadline. The remaining 8% were filed late and received automatic penalty charges.

Guess which people had accountants?

While leaving your Self Assessment to the very last minute may seem ok for those who do not have an accountant, it does carry some risks. Here are just a few examples as to why it could be beneficial to you, to seek professional help, early on.

Is the tax I pay right?

No one expects you to know all the rules surrounding income tax, but how do you know the expenses you claim against your income are allowable? more, how do you know something you haven't claimed for isn't?

Depending on the type of business, there are all sorts of expenses you can claim which helps reduce your tax bill you could be unaware of. An allowance for working from home, cleaning of clothing, telephone expenses to name just a few.

Time to pay?

Not only is January 31st the deadline to file your Tax Return online, it is also the deadline for when your first tax payment should be paid and cleared by, leaving your Self Assessment until the last day, doesn't really give you much time to reflect or work out, how your going to pay your tax bill.

How much should I pay?

Did you know, that any income tax due on self-employment over £1000 carries a 1/2 Estimate on Account, both in the January and July? You may have calculated that after expenses your tax will be £1001, but in actual fact, you will pay £1501.50 January 31st and another £501.50 July 31st.

Although this extra tax will offset your tax bill for the following year, not having an understanding of income tax rules means you may not have accounted for the increased bill. And leaving your filing until the very last day, isn't going to allow you some time to find that extra money.

Allow Time to Seek Advice

You should always allow yourself enough time, to accurately calculate what you can and can't claim, what your tax bill will be, and how you expect to pay it. If you are unsure of what can or cant be claimed, telephoning someone on the last day isn't really going to help. Last year, the deadline fell on a Sunday, it's unlikely you will receive professional advice on that day of the week!

Seek Professional Services

While you may feel competent in completing your Tax Return, you won't know all of the rules surrounding tax, professionals will be able to find ways to reduce your tax bill to an amount you are due to pay, not what you think you should.

Online tools only help so far as to calculate the tax due based on the information you provide, they can not tell you ways in which you can make savings, nor whether there are other things you are allowed to claim which reduces your tax bill.

Depending on the amount of information you provide, an accountant won't charge very much to file your Self Assessment on your behalf, you can leave all the stress and worry of gathering receipts at the last minute, and you never know, you could end up being pleasantly surprised with the result.

With just over two months left to file your Self Assessment, Why not contact Moonlite Accounts today to discuss this, and any other accounting needs.

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