If you have recently joined the many others who have become self-employed, with that freedom and flexibility you have there are new responsibilities. One of these new responsibilities is filing tax return that show whether or not you have earned enough in the tax year to be liable to tax charges. In the UK you have to file your tax returns by the 31st of January. The HMRC have released a new video as part of their annual campaign to encourage people like you and I to file our tax returns as soon as possible. Please take the time to watch the video below.
The aim of the video is to encourage people to file their tax returns on time, as even though 93.4 of self-employed people file them on time; there are many others who don’t. Not only will it add to the level of stress you may feel regarding your tax returns, but for every day you are late filing them you are liable to late submission fees.
Why it’s Important
When you are self-employed it can be quite stressful and leaving tax returns to last minute can only add to that stress. Therefore I feel it’s important to encourage anyone to do it as soon as possible. Not only will you be able to work out what tax you may have to pay, but the sooner you do it, the sooner you will have peace of mind that it is out of the way until next year.
Easier Than You Think
The interesting thing is that it is easier to file your tax returns than it has ever been in the past. Four simple steps outlined on the HM Revenue & Customs website show just how easy it is. Simply find your online activation code, collect your receipts and separate business expenses from income, use their online service to begin, then finally complete and submit your tax return.