January is supposed to be a month full of fresh optimism. New Year’s resolutions are in full swing. Bad habits are swapped for healthy choices. Important steps are taken towards big dreams and aspirations.
For the self-employed though, the first month of the year is a different kettle of fish. When you earn income outside of PAYE, January is known as being the painful, stressful time when the taxman demands his money.
Nonetheless, for freelancers/contractors yearning for a positive January, there’s hope yet. It’s simply a case of sorting tax returns far earlier than usual. There are all kinds of great benefits to sorting your Self Assessment on the right side of Christmas. And here, we’ve listed just a few of them…
Enjoy a calculator-free Christmas
You’ll undoubtedly have a 9-5 working friend who’s expressed their jealousy of your self-employed career. After all, you get to pick and choose your hours. But what your pal never sees is the less glamorous side of freelancing. Sights like cobbling together receipts on weekends and punching numbers into a calculator on Christmas Day.
A lot of self-employed workers are forced to sacrifice family time by preparing their accounts for their tax return over the festive holidays. But if you get started now – perhaps contributing half an hour a day – your Self Assessment will be ready to fire off before the 25th. This way, you can kick back and enjoy Christmas. Nothing beats that feeling of peace of mind.
Ensure precision
HMRC won’t settle for anything less than a flawless tax return. The taxman doesn’t sympathise too much with mistakes, but errors are common on Self Assessments regardless. Every year, thousands of self-employed workers submit erroneous returns as they scramble to meet the January deadline.
Rushing inevitably leads to Self Assessment blunders. These forms are too intricate and complex to leave until last minute, so make sure your books are complete and up to date. When you’re not racing against the clock, you can carefully go back through all your transactions/receipts to make sure everything is accounted for. The sooner you start, the more accurate your Self Assessment will be.
Find high-quality help
Tax returns always turn out to be far more complicated than you initially anticipated. No matter how effectively you kept track of your ins and outs throughout the year, it’s so easy to let something slip by. When you’re left in charge of working out what you owe and what you’re owed, it’s easy to become overwhelmed.
That’s why it’s a good idea to go shopping for a first-rate freelance/contractor accountant before the lines get jammed in January. These finance professionals cater specifically for the self-employed crowd, helping you complete an accurate Self Assessment that HMRC approve of. You’ll receive every penny of what you’re entitled to in expenses, and you’ll gain a greater understanding of how your tax works.
A really Bright Idea…
Bright Ideas Contractor & Freelancer are the perfect team to turn to for professional support with Self Assessment tax returns.
We can help you get your finances in order starting from today, handling absolutely everything so you’re free to enjoy a stress-free Christmas and New Year. Get in touch on 0161 669 4221 today for more information.
