How to Properly Organise Your Accounts when Filing Your Self-Assessment Tax Return

We can all smell it in the air; the Christmas season is upon us! And if you are operating a small or medium-sized business enterprise, you know full well that this means potentially increased profits for you. But, at the same time, you also know that this is the time to get all your accounts in the proper order for the self-assessment tax return on the 31^st of January next year. Whilst you may think that the self-assessment tax return is still a long way from today, think again – before you know it, the Christmas season will be over, and you will have to scramble to make sure your self-assessment tax return is in good order.

Know your accounting or financial dates

The first thing you have to know in regards to your self-assessment tax return is your accounting or financial dates. If you are a sole trader or proprietor and you have chosen to prepare and organise your accounts according to the tax year, then this means that your accounts should include all your transactions between the 6^th of April and the 5^th of April. However, if your accounting or financial year does not match the 6^th of April to the 5^th of April tax year, you will be taxed by HRMC based on the profit you have earned for the accounting or financial year which is finished during the duration of the tax year. For instance, if you prepare and organise your accounts until the 31^st of December, then in 2015-2015 you will pay your tax return on your profits for the year 2015.

Know your whole income

When organising and filing your self-assessment tax return, you have to make sure that all your business income is incorporated. This includes income from the invoices which you have already issued but have not been paid for yet. This also includes income that is due you for any project, service, or work you have already done but which you have not sent the invoice for yet. And if you have any service, project, or work that goes over the year-end of the accounting year, the work you have already performed or the service you have already given before the end of the year should be included as well.

Know all your costs

Along with your income, you should also make sure and confirm that you have included all the costs and expenses you have for your business. If not, you can end up paying an unnecessary higher amount in tax. Do not forget to include costs for your business which you have paid for using your own money or credit card, which would be deemed out of pocket expenses from which you can also make a claim for tax relief. With your costs, you can also include the expenses or costs you have already incurred but have not yet settled or paid for (this includes bills from suppliers, etc.).

If you are a new business owner, you can also incorporate costs that you incurred prior to the official start of your business, as long as these costs were incurred not longer than 7 years prior to commencing business operations officially. For instance, if you paid for banners or posters a few months before your business opened, then these could be included in your costs.

If you need expert help filing your self-assessment tax return, you can turn to the central London accountants of GSM & Co. who have helped numerous businesses and individuals throughout the years. These central London accountants know exactly what is required to keep all your financials in order – and will leave no stone unturned making sure your requirements and responsibilities are taken care of.

Image attributed to adamr/FreeDigitalPhotos.net