Monday, 3 February 2014

Tax return not what you expected.

It is thought approx 1.5 million people have still not done their tax return for 2012/3 for various reasons. Why does the self-assessment tax return take so many by surprise.  Its a bit like Christmas we all know what date it’s going to be on but unless we are all organised we are never ready for it.  I know several sole traders – not my clients – who have turned round and said they did not know how they were paying their tax demand as it was more than they expected.   With some they had not taken into account the payment in advance they are having to make but others had not realised how much they had earned. 

 

Firstly as a business you should be keeping track of your turnover and your expenses.  Secondly if you do your books – or get a bookkeeper to look at them - on a regular basis then you have a rough idea what the payment is likely to be.  Considering there is nine months from the end of the tax year till the return has to be done there is sufficient time to get the return done and if necessary set up an agreement with HMRC to get the monies owed paid.