Tax season can be stressful, but it doesn't have to be. With a little preparation throughout the year, you can make filing your tax return a smooth and straightforward process. Here's how to stay ready and avoid the last-minute panic.
Know Your Deadlines
For Self Assessment tax returns in the UK, the key dates are:
- 31 October – deadline for paper tax returns
- 31 January – deadline for online tax returns and payment of any tax owed
- 31 July – second payment on account (if applicable)
Mark these dates in your calendar and set reminders well in advance. Missing deadlines can result in automatic penalties starting at £100.
Keep Digital Copies of Everything
Gone are the days of shoebox accounting. Use apps or cloud storage to photograph and save receipts, invoices, and bank statements as soon as you receive them. This creates a searchable, organised digital archive that's easy to access when you need it.
Reconcile Your Accounts Monthly
Don't wait until January to look at your finances. Reconcile your bank statements with your records every month. This helps you catch errors early, understand your financial position throughout the year, and makes year-end preparation far less daunting.
Track Mileage and Expenses in Real Time
If you use your vehicle for business, keep a mileage log. Apps like MileIQ or even a simple notebook can help you track journeys as they happen. The same applies to other expenses—record them when they occur rather than trying to remember everything months later.
Understand What You Can Claim
Familiarise yourself with allowable expenses for your business type. Common deductions include:
- Office costs and supplies
- Travel and subsistence
- Marketing and advertising
- Professional fees (legal, accounting, etc.)
- Equipment and software
- Home office expenses (if you work from home)
Knowing what you can claim ensures you don't miss out on valuable tax relief.
Set Money Aside for Your Tax Bill
Avoid the shock of a large tax bill by setting aside money throughout the year. A simple approach is to transfer 25-30% of your income into a separate "tax savings" account. When your bill arrives, you'll have the funds ready.
Review Your Previous Tax Return
Before starting your new return, review last year's submission. This reminds you of what information you'll need and helps you spot any patterns or areas where you could improve your record-keeping.
Get Help Early
If your tax affairs are complex or you're unsure about anything, don't wait until the deadline is looming. Contact an accountant early in the tax year to get advice, set up proper systems, and ensure you're on track.
At Bowlands Chartered Accountants, we support individuals and businesses with tax preparation year-round. Get in touch today to discuss how we can help you stay organised and stress-free during tax season.
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