While the 2022/23 tax year may be over, the self-assessment deadline is still months away. It looks like you have heaps of time to submit your return, so why worry about it now? Getting your return done and dusted early could give you more time to budget, alleviate stress and (hopefully) lower your tax bill. Here’s what you need to do to get things moving.

1. Register for self-assessment

If you haven’t already done so, you should register for income tax self-assessment as soon as possible. There are different ways to sign up depending on whether you’re self-employed or not, so make sure you follow the right guidance.

Alternatively, your accountant or tax adviser can register on your behalf.

2. Round up your paperwork

You’ll need to have all your financial information and login details on hand to file your self-assessment return. This will include:

• your Government Gateway ID and password
• your ten-digit unique taxpayer reference (UTR)
• your National Insurance number
• details of any untaxed income during the tax year
• your business expenses records.

If you’ve already paid tax on any income or contributed to your pension pot during the tax year, those details could help you reduce your tax liability even further.

Your accountant can advise you on the paperwork you’ll need to gather together if you’re unsure.

3. Maintain good bookkeeping practices

Keeping accurate, up-to-date records throughout the year can make it much easier to maximise your business expenses claims. Bookkeeping can get repetitive, but tools like cloud accounting software can really speed up the process.

If you’re a self-employed business owner, you can even integrate your business processes with cloud accounting software to automate many of your bookkeeping tasks.

The right software can also make it easier to collaborate with your accountant.

4. Keep everything

When we say keep everything, we mean it: every receipt, every invoice and all your financial records from the relevant tax year.

You’re not required to submit all this information with your tax return, but you do need to keep hold of the relevant documents in case HMRC requests proof of your business expenses.

Again, you can use technology to your advantage here. Some cloud accounting software allows you to record your receipts digitally, making it much easier to keep track of everything.

The Benefits

1. More accurate budgeting

The earlier you complete your self-assessment return, the sooner you can start budgeting for the year ahead. You don’t need to pay your bill straight away either, so you can use that extra time to put more money aside each month. That way, you can ensure you have enough to cover your liabilities before the deadline.

2. No more missed deadlines

Failing to submit and pay your self-assessment return on time can land you with an automatic £100 fine — even if you only miss the deadline by minutes. This penalty will continue to grow the longer you wait to submit your return, so don’t hang around. By getting ahead of the game now, you won’t need to worry about late-filing penalties in 2024.

3. Save money on your tax bill

A bit of a head start can make all the difference to your tax bill. You’ll have more time to draw up a tax strategy, allowing you and your accountant to explore different tax-saving opportunities. If it turns out you’ve overpaid your taxes, submitting your self-assessment return now could mean receiving that rebate a little earlier.

Enjoy the rest of the tax year

Completing your self-assessment tax return as soon as possible means you can sit back, relax and enjoy the rest of your year. Why worry about tomorrow’s tax when you can pay it now?

Get in touch with us today to access support on your self-assessment bill.