As April approaches each year, it means different things for different people. For those who work in jobs with PAYE (pay as you earn) salary payments, April simply means the approach of lighter evenings and mornings and the countdown to summer holidays in the sun.
But if you are self-employed, the approach of April means the end of a tax year and the need to update your accounts to begin recording a new year. No sooner have you entered the figures for the last tax year, when the inexorable countdown to the next tax deadline begins. If you are in the Wakefield area and find self assessments overwhelming, here are some handy tips that will help you to keep on top of your accounts.
Plan early for your self assessments. Once the tax year ends on 5th April and the new one starts on the 6th April, you can begin to prepare your records to complete your self assessments. Many Wakefield businesses and self-employed workers see the following January 31st deadline as the time when they should complete the self assessments, but there is no reason you cannot break this cycle and deal with your self-assessments much earlier, perhaps by June or July. This will mean that you are not tracking the current tax year and also the past tax year for most of a year.
Keep your paperwork tidy. Have the habit of recording your expenses and your income as it arrives, perhaps each week. There is nothing worse than getting to the end of the year and having to worry about the receipts for equipment that you bought, or fuel for your van, or other such costs. Instead, create a filing system and stick with it.
Have an effective records system. Use an effective system for tracking and totalling your figures so that when entering your self assessments, some of the work has been done for you. One method is to use simple spreadsheets which will do some of the calculating for you. If you have many customers in the Wakefield area, keeping a track of these totals in an automated record will make your work much easier.
Similar to having an effective records system, work smart as well. Avoid using many accounts if fewer or even one will suffice. The more complex you make your payment and expenses records, with money transfers and different accounts, the harder it is to track your income and expenses for your self- assessments.
Of course, the best thing you can do is to simply bypass all these steps and engage an accountant. In the Wakefield area, the best choice is David Adamson, an experienced accountant of over forty years. Not only can he deal with your records and self assessments in a way that removes all of the stress and the complexity, he can find any claims that you are missing and make sure that your self-assessments truly reflect what you are entitled to.
For help with self assessments, contact Wakefield area based David Adamson today.
0808 108 1545
Updated by David Adamson himself 26th June 2021