6 things self employed people shouldn't forget today!

6 Things Self Employed People Shouldn’t Forget Today!

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For Self Employed people, January 31st is a very important date in the calendar.

As we live such busy lives, though, it can be easy to forget some important things at times. With this in mind, here are 6 VERY important things you shouldn’t forget to do today if you are self employed.

Submit Your Tax Return

First on the list if you haven’t done so already is to submit your tax return to HMRC. 

These days the process of submitting a tax return is a simple one if you do it online. There will likely be a mad dash for many people to submit their return on time, though. So, it makes sense to get it done as early as you can. This way you can clarify any questions you may have with HMRC and you also won’t risk being caught out by website down time or other unexpected issues. 

The phone lines at HMRC will likely be busy today. If you do have questions to ask then be sure to get on the phone as early as possible.

Don’t forget there may be fines to pay if you don’t submit your tax return on time, so be sure to get it sorted today!

Submit Your Final Earnings to Tax Credits

Once your return is in and you have your final confirmed earnings to hand, you might also want to get on the phone to the tax credits office. 

If you are in receipt of child or working tax credits then the tax credits office will want you to confirm your final earnings for last year by January 31st. 

You may have already given them your final figures, of course. In this case you might be able to skip this step.  If you’ve only provided estimates, however, then today is the day to let them know your finalised figures.    

Pay What You Owe

Another important thing to remember is to pay any tax that you owe. 

While you won’t get a huge fine right away for not paying on the dot, there are financial penalties and interest to pay as the months progress. You may also find that HMRC start chasing you for the outstanding money sooner than you expect. So, if you haven’t paid what you owe just yet, then today would be a good day to do so.

You can get more details on the fines and penalties for late or non payments on the .gov.uk website.  

Start Saving For Next Year

Once you’ve paid what you owe for this year you might see that need to put a savings plan in place for next year’s tax payment. This might also be true if you have a payment on account due midway through the year. 

To take care of this you may decide to open an online savings account. If you don’t want to be faced with the worry of a big tax payment this time next year then setting up a savings plan might be a great call.   

Get Organised for Next Year 

On top of saving for next year, you may also want to get your finances more organised too! 

There are a few different ways you can achieve this. One way would be to try out an online accounting program. These programs can help you to keep track of your business finances throughout the year. This way there will be fewer big surprises come this time next January. 

The other way is to take a look at alternative business bank accounts like Revolut for Business. These accounts often allow you to integrate your business account directly with your online accounting software. This makes the whole accounting process simpler and more efficient.

Prepare for Brexit

While we wouldn’t usually mention Brexit in a post like this, with it happening today it does deserve a mention. 

Most people probably won’t notice much of a difference to their day to day lives after Brexit. For all kinds of businesses, though, there may well be preparations that need to be made.

Today might well be a good day to look into how Brexit might affect your own business. There is guidance available on the subject online, including on this page of the Government’s own website.

We’re not in the business of scaremongering on this blog but we do believe in being prepared for the future. 

Be Aware but Not Afraid!

While January 31st isn’t a date self employed people need to be afraid of it is certainly one to be aware of. If you haven’t yet taken care of some of the areas listed above, now might be a good time to leave off what you’re doing and do so. This could save money and hassle in the long term and will help you to keep your personal and business finances in good order, not just for the present tax year but for future ones too!

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