If you’re self-employed and earning money, you’ll need to submit a tax return. Maybe it’s something you do a side hustle, or it could be the full-time work you have in order to bring in the income each month. Submitting your tax return for the first time can be a little daunting, but hopefully, these tips for doing your tax return will help.
Start Saving Receipts
It’s a good idea to start saving your receipts. This will come in handy when you do your expenses because every expense can help reduce the amount of tax you pay in the end. Try making a habit of asking for receipts and then storing them safely in your purse or wallet. At the end of the week, transfer these receipts into some sort of filing system, keeping each month’s worth separated. This will then make the whole process a lot easier when submitting your tax return.
Look At What You Can Expense
Depending on your work, you may be able to claim on expenses for certain things. For example, if you have a business that requires you to buy or hire equipment, you will probably be able to claim on it to reduce the tax you pay. Travel might also be relevant to what you do and anything you use that links to the business. This might be clothing and other beauty appointments if you’re a performer. There are many claims that you can make when it comes to your expenses, so ask others who are already experienced in tax returns or get professional advice from HMRC itself.
Hire An Accountant
Not everyone has a good experience in managing their taxes. For the small cost of hiring an accountant, it might be worth your time to hand the responsibility over to someone who has the experience to submit tax returns. They’ll also be able to give more detailed assistance on expenses and what you can claim to save yourself even more money.
Alternatively, there are services like the H&R Block tax software that can help with filing expenses, your previous claims, and much more.
Learn From Previous Mistakes
Once you’ve submitted your first tax return, whether you get help or not, it’s good to learn from your mistakes. If it’s taken you hours to collect all of the paperwork and file it properly, then make sure you’re doing this throughout the financial year. It’ll save you time when it comes around to filing your tax return, especially if you leave it to the last minute. It’s also worth remembering that you can file your tax return as soon as the tax year is over. However, a lot of people do leave it until the final hour before the deadline hits.
Your tax return doesn’t need to be something that’s feared, and if you prepare and organise yourself, it can be a seamless task. Look at getting extra help where required and always plan ahead so that you can submit the tax return with enough time to revise if needed.