Her Majesty’s Revenue and Customs (HMRC) have proposed changes to the tax return procedure in the Uk. Here’s what you need to know. Completing a tax return each year is something that’s particularly loathed by many small business accountants and entrepreneurs, but there’s no denying how important it is to ensure your tax return is completed in time. In this guide, we’re going to share a few useful tips and ‘things you should know’ when it comes to tax returns – so with this in mind, let’s begin.
1 – Tax preparation has evolved
These days it’s possible to use a wide range of software to complete your tax return, and it’s certainly worth taking advantage of this fact – simply because it makes the entire process much easier to handle. In some cases, it’s possible to submit your entire tax return online, too.
What’s more, the HMRC also offer a variety of help to small business owners who may be struggling to complete their tax return. In particular, the Free File Software can be very useful – although it’s only available to those businesses with an income below £28,000.
2 – Early preparation is key
Perhaps the best tip for making the tax return season easier is preparing early and often – rather than leaving everything to the last minute. In fact, having a good bookkeeping system in place will make your tax return much easier to cope with, and it really helps to take away a great deal of the stress you may be feeling at this time of year.
3 – Watch out for the deadline
The tax deadline for filing your return is usually the same, but this year it’s going to be earlier due to a federal holiday. So instead of being the usual April 15th, it’s pushed back to the 18th April – buying you a little more time. However, it’s definitely recommended to have your return filed much earlier than this date if you can!
4 – Be aware of identity theft delays
Due to the new measures undertaken by the HMRC to reduce the chances of identity fraud, response times are expected to be delayed – and these new security measures are likely to be one of the main culprits. Again, this is yet another reason why it’s important to file your return as early as possible. Additionally, the closer we get to the due date, the busier the HMRC customer service lines are becoming – with some experts estimating that they may be swamped very soon.
Ultimately, there’s no denying that tax return season can be stressful, but if you prepare your return early, you should be able to have a smooth and easy experience where the HMRC are concerned.