Avoid Self-Assessment Mistakes with These 5 Invaluable Tips
Completing a self-assessment is the bane of a lot of contractors’ lives; on top of taking a lot of time, there are often many common mistakes made which can either result in having to start again or a receiving a fine.
Read through our advice below to prepare yourself for your next self-assessment and avoid those pesky errors!
Remember to Pay
This has to be the first thing we talk about, even though it’s the last thing you need to do. More individuals than you may expect complete their self-assessment…and then do nothing. It’s easy to assume that everything’s done now, but you do actually have to arrange the payment to HMRC yourself – whether it’s by direct debit or cheque. Be sure to finish this step to avoid any late fees or criticism from HMRC.
Keep a Record of Everything
This will make your life so much easier when it comes to self-assessment time, but is something so few contractors, freelancers and business owners do right. Keep a clear and easy to follow record of every piece of expenditure, every wage or dividend – anything to do with money! When it comes to filling in your self-assessment, you’ll find having everything to hand (preferably on a spreadsheet) speeds the process up and prevents any panicked searches for bank statements.
Check the Figures
Check your record keeping and ensure that the figures entered onto the tax return match the actual amounts in your records. Any errors could result in you under or over declaring your income and taxes.
You will be responsible for ensuring that the correct amounts are declared to HMRC.
Read the Questions
Just like an exam back at school, be sure to read the questions and make sure you know exactly what the form requires of you. If you provide the wrong information, it could mean you have to re-do the whole thing or you could be declaring the wrong amount of tax/profit etc. Always be sure before you do anything.
Use an Accountant
Of course the best way to avoid all of the headaches involved with self-assessment forms is to simply hire an accountant. They have the professional knowledge to understand what is required and have often done it hundreds of times before. Still remember to keep a record of everything though – it’ll make their life a lot easier!
If you want to complete your next self-assessment on time and correctly, consider asking an accountant for help. Contact Gorilla Accounting for expert advice and professional assistance, and avoid any mistakes!