How Do I Prepare for the End of the Tax Year?
January marks a new year in the Gregorian calendar. February? Chinese New Year. And April? Of course, it’s the end of the tax year. Once March comes around, the minds of self-employed workers and sole traders are firmly set on the end of the tax year, which runs 6th April – 5th April in the UK. But what exactly does it mean – and how should your business prepare?
What is the tax year?
The tax year is a 12-month period recognised as a ‘year’ in itself for taxation purposes. It runs from April 6th each year to April 5th the following year in the UK. By the end of each tax year, self-employed workers and sole traders need to have their accounts fully prepared so they’re ready for filing and submission.
What do I need to do?
At the end of the tax year, you will be sent a notification to file your self-assessment tax return for that year. But, while the year ends on 5th April, you don’t actually need to file your tax return for that year until:
- 31st October the same year for a paper return
- 31st January the following year for an online return
That said, it’s still important to prepare for the end of the tax year. Make sure you have all invoices, statements and bills from the tax year. Organise them in date order, so you can easily find any particular invoice or order form when needed. Remember, this includes all business transactions, such as travel costs, phone bills and office equipment, for which you may be able to claim back VAT. It might take a while, but it will be worth it when it comes to filing your tax return.
Doing all your tax work in one go is never going to be easy. That’s especially the case when you consider all the receipts for business-related purchases. If you want to keep things running smoothly, dedicate an hour or so every week to organise your documents. This isn’t just for tax. It will also come in handy for dealing with unpaid invoices and general financial work.
Making things easier
Planning ahead is one way to reduce the stress of tax returns. But it still leaves you with a considerable task on your plate. Keeping track of invoices and receipts is no easy feat when you’re trying to run a business. That’s where UWM comes in.
We’re a friendly team of cloud accounting experts based in Leeds. With over 30 years’ experience in accounting, we’re fully equipped to take all the hassle out of your tax returns. With our help, your accounts will run smoothly with no stress, giving you a lot more time to keep your business at its best. Contact our team today to talk more about our services and how we can help you.