Blog Looking Back On The Tax Year & What You Can Do Better

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Looking Back On The Tax Year & What You Can Do Better

As we look ahead to a fresh tax year, it’s important not to lose track of the past. In fact, there’s real value in thinking back over the preceding twelve months. You might have made mistakes or errors of judgment before, but confronting these faults is the best way to ensure they don’t happen again.

We know how easy it is for tax to get on top of you. That’s why we’ve put together this blog highlighting some of the best steps to take on the eve of the 2018/19 tax year. Think about where you’ve gone wrong before, and take these tips into consideration to enjoy a more productive (and less stressful) time dealing with HMRC.

Keep an eye on key tax dates

One of the main reasons why people end up overwhelmed by tax issues is that they are unprepared for the big dates. By taking note of the most important days and marking them on your calendar now, you can organise your finances accordingly way ahead of schedule – taking stress out of the equation for good.

Some of the main dates to remember are:

• 6th April 2018: First day of 2018/19 tax year
• 31st July 2018: Second Payment on Account due
• 31st January 2019: Self-Assessment tax return deadline
• 31st January 2019: First Payment on Account due
• 6th April 2019: Last day of 2018/19 tax year

Log your expenses as you go

It’s important to know which expenses you might qualify for, but it’s even more important to record them correctly. You could be well within your rights to claim back money, but if you don’t have the receipts or records to prove it, HMRC might think you’re trying to pull the wool over their eyes.

You’ll need to obtain proof of most your expenses, including:

• Bookkeeping fees
• Bank charges
• Postage
• Courier charges
• Workwear
• Fuel
• Accommodation
• Travel

Log them as you go to minimise the chances of any errors occurring.

Make sure you’ve got the paperwork right

Sometimes, paying too much tax can simply be a misunderstanding. If you’ve checked the wrong box on a form or failed to notify the taxman about employment changes, you may be assigned an incorrect tax code, meaning you’ll be charged far more than you should be.

You can usually tell if you’re on the wrong tax code if your payslip shows:

• 1150 W1
• 1150 M1
• 1150 X

These are emergency tax codes, and you should get in touch with HMRC to get yours updated as soon as possible. Give yourself plenty of time to complete tax paperwork and triple-check before you submit.

Turn to a pro for help

Using an expert accountant like Bright Ideas can offer you invaluable insight into the world of tax, with our professionals decoding the complicated areas and handling the hard parts for you.

Running a business is difficult enough without having to worry about tax, and there’s no better time to sign up with an accountant than the beginning of a new tax year. Arrange a free consultation with our team on 0161 669 4221, info@biaccountancy.com, or through our online contact form.