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Tax returns for the self employed

Posted on January 27, 2017 at 8:44 pm

The deadline is looming for submitting your tax return for the self-employed. If you are submitting your tax return only you only have until the 31st January to do it otherwise you could find yourself hit with a number of penalties which can quickly escalate.

Being self-employed can have many advantages but it also comes with a lot of responsibility such as record keeping. You will need to decide if you are going to do your own tax return or if you are going to use an accountant. If your business is fairly small and straight forward then you may want to save yourself the accountancy fees costs, but make sure that you are aware of exactly what you can and very importantly, what you cannot claim for.

Simple costs such as travel expenses are not always as straightforward as you may think, as if for example you use your car to travel to and from a permanent place of work, HMRC will not allow this as a deductible expense and therefore it should not be claimed for.

Tax returns can be a bit of a minefield and it is imperative that you get it right. You need to keep good records and receipts of all business related transaction to allow you to be able to submit your claim at the end of the tax year and because you get approx. 9 months to submit it after the financial year has ended, it’s easy to leave it all until the last minute.

 

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