How To Make Filing Your Taxes Easier

It’s that time of the year for anyone self-employed, it’s tax submitting time. Last year a new record was set with 93.68% of people submitting their Self Assessment tax returns on time. But over 700,000 people missed the deadline. A whopping 700,000 returns were submitted on deadline day which is crazy. I’m pretty organised and try and submit my taxes as close to the end of the tax year. Mainly around June/ July time as I know how quickly time goes and how easy it is to forget. If you’ve still got your 2018/19 returns to file then here are some ways to make filing your taxes easier and help you get more organised for future years.

Keep a spreadsheet all year around with your earnings

I always keep a spreadsheet of anything I make so I can keep track of my earnings. Not only does this make filing your taxes easier but it’s a good way of seeing how much you’re earning on a glance. I keep details such as the date an invoice was paid, how much was paid, what it was for, how it was paid (BACs/ Paypal with invoice/ Paypal without an invoice) and a contact email address. Having all of these details means if I need to look into anything I have everything on hand.

Anyone self-employed knows that when send an invoice vs when an invoice is paid can be very different. So I always note details down for things I am waiting for payments for. But it only moves onto my full spreadsheet when it’s paid. When I’m submitting my taxes I know straight away how much I have made and I don’t need to trawl through anywhere to find it.

Make filing your taxes easier by keeping a note of all of your expenses

In another tab alongside the above spreadsheet I keep a note of all of the expenses I pay. This can include things like hosting money, subscriptions for scheduling platforms like Tailwind, or anything I use directly for my blog. I also claim a percentage of both my mobile phone bill and my home internet bill as I require both of these in order to work. If you have a purely business phone you can claim 100% of the bill. But as mine is also for personal use I only claim for a lower percentage of it.

Alongside keeping a note of when the payment came out, how much it was for and what it was for. I always keep a note of where the paper trail for it is. This might be a PDF invoice I’ve downloaded and added to my tax file. Or it could be a screenshot of a physical receipt, or a Paypal invoice. Noting all these down as I go (or once a month at least) makes filing my taxes easier as I don’t need to trawl through bank statements to find my expenses.

Keep aside 20-25% of your earnings to pay for your tax

I know for some people this is easier said than done. But if you keep 20-25% of your earnings aside it means you can pay off your tax all in one go. And chances are you’ll have some money left over to treat yourself. I always use that for a ‘well done you’ve submitted your taxes’ treat. This will certainly make filing your taxes easier as you’ll have the money straight away and won’t be wondering how you’re going to pay it.

If you submit your taxes early enough before the deadline if you’re a little low, or didn’t quite save enough you have time to top it up.

Submit your taxes as early as possible

This is a bit of a no brainer, submit your taxes as early as you can. Not only is it a weight off your shoulders and something you don’t need to worry about forgetting. But it means if you are a bit under how much you need to pay your taxes, you have time to find the money. Do you get a bit annoyed about the smug people who come the end of April say they’ve submitted their taxes? Being one of those people is a great feeling let me tell you.

Submitting your taxes earlier also means if you have any issues. Or you need to get more information you have time to sort it out.

Make filing your taxes easier by keeping a note of your login details

The thing which always caught me out when filing my taxes was my damn login details. I’d always lose them or forget one of my security details. So now I have them safely stored away meaning I know where they are whenever I come to submit my taxes my details are on hand. I’ve heard so many stories of people going to submit their Self Assessment on the last few days. Then not remembering their details and having to request new ones. But the new details didn’t come until after the deadline meaning you have to pay a fine.

But most importantly don’t be afraid to ask for help

There are so many resources out there that can help you with your Self Assessment. If you earn enough and are clueless you may want to pay an accountant to help out. But I firmly believe that you don’t need to do this. I’ve submitted my own taxes every year since I started earning from my blog and freelance work. Most questions are easy to answer via freelancing/blogging Facebook Groups I’m in. Or just by Googling.

Do you submit your taxes? Have you done yours yet for 18/19?

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