We all make mistakes. It’s called being human. Unfortunately, the taxman isn’t exactly the forgiving type. Tiny errors can lead to massive consequences when you get something wrong on your tax return. That’s why it’s so important to ensure your Self Assessment is in ship shape.
Here, we’ve put together a list of surprisingly common blunders that freelancers and contractors make on their tax returns:
Not declaring expenses
Expenses can prove to a be a god-send for many self-employed workers. However, not everyone is aware of what they can actually claim for. In reality, you could be entitled to some enormously beneficial tax relief – but HMRC won’t grant it unless you declare these expenses on your Self Assessment tax return.
Be sure to check the list of potential expenses you might be able to claim for, be it travel, office equipment or fuel. Every pound matters, after all.
Not giving yourself enough time
The Self Assessment golden rule is to give yourself plenty of time. Rushing your tax return is a sure-fire way to make a mistake.
When you’re hurrying through the form, it’s easy to forget about sources of income. Using an old tax return as a quick template may also prove problematic as your circumstances may now be different. For example, you may have crossed the earnings threshold to the point where you should be making higher student loan repayments.
The deadline for this financial year is January 31st, 2018, which sounds like you still have plenty of time and then some. Think again. Christmas and New Year are notoriously busy periods that inevitably flip your schedule upside-down. And when you return after the holidays, you’ll be up to your neck in clients wanting to kick-start their year. Start now and avoid the stress.
Failing to triple-check
It’s not the most invigorating task in the world, but proofreading your Self Assessment over and over is crucial for flawless accuracy.
It’s all-too-easy to accidentally to bypass certain sources of income or for expenses to slip your mind. The odds are you will have dealt with a lot of different clients during the course of the year, making many transactions in the process. It’ll take time to go back through your business history, and proofing your return is the only way to make sure you cover all bases.
Check, check, and check again.
Not recruiting the right support
There’s no skirting around the fact that filling out a Self Assessment can be a laborious and rather daunting task when you’re left to do it alone. That’s why you should always bring in a professional to support you.
For years, Bright Ideas have been helping people all over the UK complete their Self Assessments accurately and effectively. We have the tools and expertise to ensure you don’t need to worry about getting into difficulties. With Bright Ideas, you’ll never succumb to blunders.
Get in touch today and arrange a consultation with one of our experts – completely free of charge.
