Ahead of the 31st January self-assessment deadline, Jonathan Sidlin, Financial Planner and Managing Director of HSC Financial Advisers, based in South Wimbledon, offers his top 3 tips for business owners and individuals before filing a self-assessment…
1. Planning & Saving
It is vital for anyone who is self-employed to ensure that they have planned well in advance to get their self-assessment completed and to help minimise any tax they will end up paying. Work with a good accountant who can offer you clear financial forecasts and projections on your corporation tax. Be sure that they have everything they need in advance to allow for a smooth submission process. The forecasts will enable you to judge how much to set aside each month, ideally in a separate account so it can’t be touched, so that you then have the cash available to pay to HMRC when needed.
2. Invest in Tax Efficient Products
There are legitimate products that you can invest in to reduce the amount of tax you need to pay each year. From investment opportunities to pensions schemes, remember that during periods of high inflation, cash is not the best option for your profits, so investigate where to divert this money and also reduce your tax bill in the process.
3. Check for overpayments, and plan for next year
If you have overpaid on your tax bill in the past four years, you can make a claim for a refund. Ask your accountant to check and if you have overpaid it can help offset costs for this year. Looking ahead, making pension contributions are a great way to reduce tax, so look into making a payment now to reduce your next tax bill.
For more financial advice and tips, visit www.hscfinancial.co.uk
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