Starting April 6th, we enter a new tax year – the ideal opportunity to set up your processes for a hassle-free tax season in 12 months!
To help you take charge of your self-employment responsibilities and avoid the stress of scrambling for receipts next year, we've outlined some helpful tips and steps to get you organised.
1. Get organised Early
Create a Tax Folder (Digital & Physical): Store all tax-related documents in one place.
Review Last Year’s Return: Identify mistakes, deductions, or areas for improvement.
Set a Monthly Check-In: Allocate time each month to update your records.
2. Track Income & Expenses Efficiently
Use Accounting Software: Tools like QuickBooks, Xero, or FreeAgent can automate record-keeping.
Keep Digital Receipts
Maintain an Income Log: Regularly update all sources of income to avoid missing anything.
3. Understand Tax Allowances & Deductions
Know Your Allowances:
Personal Allowance
Dividend Allowance
Capital Gains Tax Allowance
Marriage Allowance (if applicable)
Business & Self-Employed Deductions:
Home office expenses
Travel & mileage
Professional subscriptions & training
Business-related equipment
Investment & Savings Reliefs:
ISA limits
Pension contributions
EIS/SEIS schemes
4. Keep Up with Tax Law Changes
Follow HMRC updates and guidance.
Subscribe to newsletters or consult a tax advisor for the latest updates.
Check for new reliefs, credits, or penalties applicable to your situation.
5. Plan for Payments & Reduce Liabilities
Make Use of Payment on Account: If self-employed, prepare for two payments in January & July.
Adjust Your Tax Code: Ensure your employer uses the correct tax code.
Set Aside Tax Money Monthly: Aim to save at least 20-30% of income for tax payments.
Invest Wisely: Consider tax-efficient investments to reduce overall liability.
6. Hire a Professional if Needed
If your tax situation is complex, consider hiring an accountant.
A tax advisor can help maximise deductions and avoid penalties.
7. Submit Your Return Early
Avoid last-minute stress by preparing and filing your return well before the January 31st deadline.
Early submission may result in quicker refunds if applicable.
By following these steps starting from April, you’ll ensure a smoother, stress-free tax return process for 2025/26.
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