Top Hacks For Tax: Get It Right First Time
Tax is not a fun job to do. When you first start working for yourself or you open up a business, one of the crucial things you will need to set up is your tax for the year.
Self assessment tax can be a complicated business, and it can take some time to fill in everything correctly and accurately. Here are some top tips for doing your tax for the first time.
Check the post
If you want to avoid an HMRC Investigation, you will need to always check your letterbox for a letter from the HMRC asking you about your tax return. You will get a letter when it is time to fill in your return and you will be given a lot of warning to get it done. If you haven’t received a letter yet, don’t worry too much about it, however do keep track of the dates just in case.
Tax breaks and reductions
If you are running a business for yourself or you are in a certain type of profession you could be entitled to getting some of your tax back. For example, if you are working for yourself and you work from home, you can actually be reimbursed for the energy you use in the home for working purposes. You will be able to calculate your usage online and you will have a small amount of money taken off your final bill to cover the cost of you working from home.
National insurance is a huge part of filing your tax return, and you need to ensure that you don’t forget to file for your national insurance alongside the tax because it can be detrimental if you forget to do it. Your national insurance is what funds the health system and services, so you have to make sure that you pay over your fee to the government this year for these services.
Don’t leave it late
The worst thing you can do with your tax return is wait until the last minute to file it. It can be tempting to wait for a while because you have a year to pay the fee back, however it is not a wise decision and it should be something you’ll be able to make sure to consider when you are filing for the return. As soon as you are able, get it done and this will allow you to live the rest of your year without the worry of tax hanging over your head.
Ask for help
There is nothing worse than looking through your tax return and not having a clue what you are looking at. It can be very confusing to look through and you can end up feeling as if any move you make will be wrong. Whatever you do, don’t struggle alone, ask for help from a professional and let them talk you through any of the parts of your tax return which you don’t quite understand, you can be sure that you have made the right choice and that you file the correct amount.