It’s easy to forget with Christmas just around the corner and staff party planning in full swing, the winter season also signals the countdown to self-assessment.
But it’s not just sole traders and partnerships that need to be mindful of the January 31st 2020 deadline but also directors in receipt of dividends above the tax-free allowance, landlords with property income and individuals with untaxed savings or commissions. And whilst there will always be the last-minute dash, planning is always the preferred option to avoid tax return turmoil and joining the 2,600 people who filed their tax returns on Christmas Day 2018, accompanied by their turkey dinner!
Sitting firmly alongside the pressure of filing on time, is the financial burden of paying tax at an already money rich time of the year. Faced with the choice of buying Christmas presents vs paying tax, I’m sure we can all agree on the likely winner. It’s essential however that tax returns, and payments are made on time to avoid hefty fines and that contingency plans are put in place for paying any tax liabilities becoming due after deducting the £11,850 personal allowance granted in the 2018/19 tax year.
Keeping up to date records and putting aside 20% of any income earnt can help with tax payments planning alongside the assistance of a trusted advisor who can ensure you claim all expenses available to you and make your submission in good time, meaning less time worrying about tax and more time celebrating the festive season.