Dreading Tax Return Time? Here’s How To Make It Easier
yWe’re approaching the time of the year that many self-employed people dread, tax return time. In the UK, the self-assessment deadline to complete and submit your return is 31st January. This covers the tax year that ended on 5th April 2023.
There tend to be three camps of people when it comes to tax. The first camp submit their tax returns within six weeks of the year ending as they’re super organised. The next camp want to get it over and done with and submit over the next two to six months. They can breathe a sigh of relief that it’s all sorted. And the final camp enjoy their Christmas break and when they hit their laptops in January realise they have less than four weeks to submit (and pay) their bill.
I’m part of the first camp. Yes I’m organised, but I also get anxious about forgetting things, not having the money aside to pay my taxes etc.
If you’re part of the final camp then you may start the new year stressed and panicked. Wouldn’t you rather be refreshed and inspired for a new year?!
What can you do to make the tax return time easier?
The first thing you can do is get an accountant to help you. You may not want to spend out more money on someone to help, but they may end up paying for themselves.
I don’t use an accountant, but for the friends I know who do they pointed out things they could claim for as part of their business that they wouldn’t have thought of. And they saved them more than what they had paid them to do their accounts.
This is especially important if your business is growing, or you have multiple side-hustles that you need to submit when it’s tax return time. It can get complicated, and accountants specialise in knowing about the system.
They can help you not only with your tax submission but ways to plan to be tax-efficient. This could include investing in your business, paying into pensions etc.
Think ahead to next tax year
You may be stressed about the 2022-2023 tax year, but we’re only a few months away from the 2023-2024 tax year ending. And nows the time to get organised for that.
Once you’ve gone through your tax return for last tax year focus on the one we’re in now. This way you can put yourself in a better situation next time.
You can complete your return anytime from 6th April, but this doesn’t mean that you have to pay the bill earlier. And you don’t have to pay anything until January, regardless of when you submit. You may be super prepared and have the money saved to pay it off. Otherwise you have over nine months to sort out the payment.
It feels so good to know it’s out of the way and you won’t be in the position of stressing in January again. And things will be fresher in your mind, you won’t be thinking back over 18 months ago to work out what happened.
And filling earlier can help if you need evidence of your income for a mortgage or loan application. Having your latest submission will help.
Start putting money aside for tax return time
Imagine submitting your returns in the last week of January and finding out you owe thousands of pounds. Chances are if you owe thousands you probably know you do, but it can still come as a shock. If you don’t have the money set aside it can be stressful and you can’t even put it on a credit card anymore.
Regardless of when you submit your next years tax return. start putting money aside now.
I opened up a Monzo Business account at the start of the current tax year. Now every time a payment comes in 20% is automatically moved into a pot. The automation helps as I don’t have to think about saving, and the pot will be there when I come to submit.
Even if you don’t have a dedicated business bank account (although I recommend you do), you can still set money aside every time income comes in. If you’re employed your employer automatically deducts tax and National Insurance from your wages and you get what’s left. You don’t have to put money aside as your employer does it for you. But you can do it for yourself.
Head to my post on how to make filing your taxes easier for more tips.
Do you dread tax return time?
26 responses to “Dreading Tax Return Time? Here’s How To Make It Easier”
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Rhian Westbury
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Great post, this is something I dread doing as so scared I will do something wrong
You’re absoluely right, it is the time of the year everyone hates lol…I am trying to be proactive and prepared…I still hate it tho lol…
It’s horrible whenever you do it, just less stressful earlier x
Ugh, tax time. My old nemesis. Every year it rears its ugly head. LOL
Yes! I have been dreading tax time. I will take your advice and as soon as this year’s is finished I’ll start planning for next year.
The year I started doing it was game changing x
I tried doing mine. Now I pay someone and it is much easier for everyone.
The first time I had to do my tax return I left really late and it made me so anxious. I am now one of those people who is super organised and gets it done ASAP.
Same here, I hate stressing x
Great advice! Getting organized early makes tax time way less stressful. Thanks for sharing this!
Tax return time always feels really scary – thank you for these tips to ease into it!
I’m always a little scared even if I submit in April haha x
This was honestly such a helpful post! Thanks for the share!!
We normally set aside funds especially for this over the year to avoid any last minute panics. I do like to be organised. The accounts are always up to date so when it comes to the time I need yearly figures it’s quick and easy.
Same here, and putting a little money aside makes so much difference x
Your post about the approaching self-assessment deadline truly resonated with me. As part of the first camp, I completely understand the mix of organization and anxiety that comes with tackling tax returns early. It’s a relief to have everything sorted, yet the concern of overlooking details or budgeting for taxes is always there. Your insights about starting the new year refreshed and inspired are spot on ā a sentiment I wholeheartedly share.
Tax season is so overwhelming but preparing early is one great way to get start and stay on top of things rather than doing it all at the last minute. I think keeping a book of finances is extremely important through the year and tracking is another great way to lessen the stress. Great read!
Those are great ways to be less stressed, I have spreadsheets to keep everything tracked and ticking along x
Fantastic advice! This is a stressful time of year for a lot of people so having some tips is always great to have.
I’m always super paranoid that I’ll forget to file my tax return on time, so I do it as soon as the new tax year starts XD
You’ve shared some great advice here though, I’m sure it will help loads of people out.
Same here, I can be so forgetful that I could see it happening haha x
Agree! As a fellow early filer, having an accountant is a game-changer. It pays off more than expected!
These are some helpful tips you shared. I agree having a chartered accountant is really very helpful.
Accountants can indeed uncover deductions we might overlook, and their expertise can save more than their fees.
This was so helpful and honestly I dread my tax return every year but hoping it be super organised and use these tips for the future š
I always worry I’ve done something wrong when I do mine haha x