FreeAgent has issued guidance to taxpayers ahead of the self assessment tax deadline on 31 January, as more self-employed workers are “choosing tax returns over turkey by using the festive period as the ideal time to submit their tax forms online with HMRC”.
The group is calling on taxpayers to register with HMRC now, if they have not done so, in order to give themselves a few weeks to complete the process.
It is also advising taxpayers to start gathering their paperwork. Depending on individual circumstances, the documents needed could include proof of self-employed income, a P60, P45 or a P11D.
FreeAgent said that as a “basic rule”, taxpayers will have to disclose any money they’ve received or earned from “pretty much anywhere”, including wages from a job, income from a trust, and interest from your bank account, except an ISA.
If taxpayers are a limited company shareholder, they will also need to provide proof of any dividends received during the tax year.
In order to assist taxpayers ahead of the deadline, FreeAgent has devised a tick list that can be checked off, and has urged people to take advantage of online resources and get professional advice if needed.
Finally, it has urged taxpayers to “make next year easy by keeping your accounts up to date” all year, in order to avoid rushing to meet next year’s deadline.
Ed Molyneux, CEO and co-founder of FreeAgent, said: “A lot has changed since the last January Self Assessment deadline. We’ve seen an unprecedented number of challenges that few would have envisaged 12 months ago, and it is small business owners and self-employed people who have been hit the hardest.
“It’s important that people running these types of businesses try to take some time out to enjoy a well deserved break over the festive period. However, they also need to ensure that they don’t miss the Self Assessment deadline and cause themselves unnecessary pain.”
He added: “We all deserve a rest this Christmas, so make sure you get yourself prepared and thank yourself on Christmas day when you are able to sit back and soak up the joy of a stress-free celebration with those who matter most to you.”