You might even need to complete one if you’re employed – for example, because you get money from property which is separate to your employment income.

In this article, we’ll take a look at the different options available for sending a tax return, and also explore Making Tax Digital (MTD) Income Tax.

Filing your tax return using a paper form or online

There are different ways you can file your tax return and pay what you owe, including:

• Online
• Via paper form

Filing your tax return online is the most common method – and in some cases this is mandatory, especially with everything becoming digitalised. But in some cases you can still file a paper return.

When do I need to submit my tax return?

There’s often lots of noise around the deadline for submitting your online return (which is 31st January), but the deadline for submitting a paper return is earlier and must be received by HMRC by 31st October.

Do I need to register before I can send a tax return?

Yes, you’ll always need to register before sending a tax return.

If you’re a sole trader or partnership

If you’re a sole trader or part of a partnership, then the onus is on you to make sure you’re paying the correct amount of tax and National Insurance on your self-employed earnings.

The deadline to register for Self Assessment is 5th October in your second tax year of business.

Thankfully, sole traders can earn up to £1,000 tax-free before they need to register and start sending tax returns to HMRC. This is known as the trading allowance.

If you run a limited company

Limited companies, on the other hand, need to pay Corporation Tax.

Most choose to register for Corporation Tax when they first incorporate the business with Companies House. If you do decide to defer it then you’ll need to register for tax within 3 months of starting to trade.

Does the way I submit my tax return affect when I need to pay the bill?

It can, yes – because the kind of tax return you must send determines what kind of tax you owe and the deadline for paying it.

For example, if you need to complete a Self Assessment then the deadline for paying your bill is 31st January (following the tax year it relates to).

Corporation Tax must be paid by 9 months and 1 day after the end of your company’s accounting period.

Making Tax Digital (MTD)

Now, if you’re used to sending a Self Assessment to report self-employed or landlord income, Making Tax Digital is something you really need to familiarise yourself with – and possibly start preparing for.

In simple terms, it’s a government-led initiative to try and modernise the tax system, while also minimising mistakes in the process. It’s already been rolled out for all VAT-registered businesses, and now it’s being rolled out in phases for MTD Income Tax.

MTD IT will replace the traditional Self Assessment, so instead of an annual tax return you’ll send HMRC smaller, quarterly updates on MTD compatible software, followed by a ‘Final Submission’ by 31st January each year.

You’ll need to follow MTD IT rules by:

• April 2026 if you earn more than £50,000 from self-employment and/or property
• April 2027 for those earning more than £30,000 in the 2025/26 tax year
• And April 2028 for those earning £20,000 in the 2026/27 tax year

An accountant can help make sure you’re complying with the MTD rules, so don’t worry if you’re a bit confused!

What happens if I miss a payment to HMRC?

You’ll incur an automatic fine if you miss a payment, and it gets worse the longer you leave it. Interest is also charged on top of penalties for any late payments. So, if you can’t pay, get in touch with HMRC immediately – as you could prevent this by setting up a Time to Pay arrangement.

If you need help with any of this, don’t hesitate to hire an accountant who will be able to walk you through the process and ensure you’re operating in the most tax-efficient way possible.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How to Complete a Tax Return appeared first on The Cheap Accountants.

Well, to answer the first question, yes, you do need to include your salary information on your Self Assessment tax return, but this doesn’t mean you’ll need to pay tax on that money again.

Why do I need to include my wages on my tax return?

The amount of tax you pay depends on how much you earn in total during a tax year, so you’ll need to report all your income when you complete a Self Assessment tax return to make sure you pay tax correctly – even if you’ve already paid tax on some of it.

Do I actually need to submit a Self Assessment?

You’ll probably need to submit a Self Assessment, even though you’re employed and pay tax through the PAYE system, if you also:

• Have extra sources of income such as from self-employment, a side-hustle, dividends, or property
• Receive taxable benefits
• Earn over £60,000 and receive Child Benefit

Where do I include PAYE income on my Self Assessment form?

If you complete your Self Assessment online then this is really straightforward. You’ll be asked a series of questions to make sure you see the correct sections that are relevant to your circumstances.

If you have earned income from employment that has been taxed at source through PAYE, this should be recorded in the ‘Employment’ section of your Self Assessment tax return form.

Anyone who uses a paper-based form to submit their Self Assessment form will need to complete a supplementary SA102 form for each employment they had during that tax year. You’ll need to provide:

• Your employer’s name and PAYE reference number
• Pre-tax employment income
• The amount of tax you have already paid on your employment earnings
• Your employment expenses or benefits, if applicable

Paying Self Assessment tax through PAYE

If you’re employed and being paid through PAYE and you owe less than £3,000 in self-employed tax following your Self Assessment submission, you have the option to pay your tax bill via your tax code.

The benefit of this is that you can spread your tax payments out over the year, rather than paying in one lump sum, by simply bumping up the amount of tax you pay through PAYE each month.

Just be aware that your employer will see the change to your tax code, so they might ask questions! Important to keep that in mind if they don’t know about your side-hustle.

 
Find more business tips and expert advice on our website, or check out our go-to guide to finding the right accountant for you.

The post Do I Need to Show PAYE Income on my Self Assessment? appeared first on The Cheap Accountants.

What you may not be clued up on, however, is how tax works if you’re an eBay seller – and this is crucial to understand if you think you might want to start selling on the platform whether full-time or on the side. Selling things online as opposed to in-store doesn’t make you exempt from having to pay tax.

So let’s take a look.

Do I need to pay tax on eBay sales?

It really depends, but in all likelihood, yes.

Basically, if you earn over the trading allowance (currently £1,000) from eBay or a combination of places, you must register for Self Assessment and report your earnings to HMRC. One thing to bear in mind is that this threshold is a cumulative amount, meaning any other self-employed income you have (in addition to that from eBay) counts towards it for the year.

It’s also worth noting that eBay are legally required to report some sales data to HMRC, so don’t try to get out of paying tax by not declaring your income. There’s no escape!

The amount of tax you’ll pay is ultimately dependent on what business structure you choose, with most people registering as either a sole trader or limited company.

Does my business structure affect how I pay eBay tax?

The structure you choose has a big impact on how and when you need to report and pay the tax you owe on any eBay profits. If you plan on treating your eBay business as a side hustle, then you might register as a sole trader. On the other hand, if you plan on going all-in, you might consider registering your business as a limited company. It really does depend on you and your circumstances, but here’s a quick breakdown of each.

Selling on eBay as a sole trader

If you’re a sole trader, you are your business, so there’s no legal separation between you and it.

This means you’re personally liable for whatever happens legally and financially, which in turn means your personal assets are at risk – or would be should anything go wrong.

You’ll file Self Assessment tax returns (or use MTD Income Tax depending on how much you make), and pay income tax and National Insurance on your profits. The rate of tax you pay depends on the total amount of taxable income you earn in a year.

You’ll need to keep accurate, detailed records of your business’s financial activity regardless of which structure you choose, but there’s generally less admin required when you operate as a sole trader.

Learn more about becoming a sole trader

Selling on eBay as a limited company

The main difference is that you’re seen as a separate legal entity to your business, and this means you’ll file Company Tax Returns rather than Self Assessments, so you’ll pay Corporation Tax on your company’s profits.

When you register your business with Companies House, they automatically enrol you for Corporation Tax with HMRC – but there’s still a lot of paperwork to complete, with you needing to appoint such roles as directors and shareholders, as well as set out how the company will operate.

The process of incorporating a limited company is quite a bit more involved than that of registering as a sole trader, and there’s a fee too.

On top of submitting Company Tax Returns, you’ll also need to report your personal income from the company (e.g. dividends), which you can do via a separate Self Assessment.

Learn more about operating a limited company

Is it more efficient to be a sole trader or limited company as an e-Bay seller?

This really depends on your total profit, who else is involved in your business, and any other income you might earn! It might be helpful to chat to an accountant about it but even if you do decide to register as a sole trader for now, you can always incorporate your company at a later date.

That said, some people just prefer to operate a limited company, so their business is a separate legal entity from themselves as a way to protect their personal assets.

Do I need to be VAT registered to sell on e-Bay?

Again, it depends. You’ll definitely need to be registered for VAT and need to submit VAT returns if:

• Your sales exceed the VAT taxable turnover threshold (currently £90,000) over a 12-month period
• You’re a seller outside the UK and store stock within the UK
• You’re a UK seller who ships things to the EU
• You’re storing stock in a specific country

You can also voluntarily register for VAT, but it’s often useful to speak to an accountant about what this would mean for your business.

It’s also worth noting that eBay will sometimes collect VAT on your behalf if your buyers are based in the EU.

Will I need to pay Capital Gains Tax on eBay sales?

This type of tax applies to the profit you make on personal assets you’ve ‘disposed’ of. It’s not based on how much you sold something for, but the gain (or profit) you received from that specific sale. If your total gains are less than £3,000, though, you don’t have to report anything to HMRC.

What’s important here is motivation for the sale. If you’re getting rid of some assets then you’ll usually trigger Capital Gains Tax, but if you’re buying things with the intention of selling them on, then you’re more likely to fit under what HMRC describe as the ‘badges of trade’. This means you’re acting more like a business, so you’ll need to pay tax like one.

Are there any other fees?

There can be, depending on what it is you’re selling. For example, there might be goods and services tax (GST), as well as listing fees added to your seller invoice.

Head to eBay’s fees for business sellers page to learn more.

Will I need to keep a log of my eBay sales?

Regardless of the legal structure of your business, you’ll need to keep records so you can track your eBay income and expenses. You’ll need this information so you can make sure you’re complying with your tax recording and reporting duties – and it will make completing a tax return much easier too! You might:

• Take on all the bookkeeping and accounting responsibilities yourself, including the submission of tax returns and payment of tax due according to HMRC’s deadlines to avoid penalties. The type of tax returns you need to submit depend on how you structure the business when you register it
• Employ a team or person in-house to take on the responsibility of bookkeeping and accounting for your business
• Hire an accountant and/or bookkeeper to do it all for you in a timely and accurate manner

Can I claim expenses if I work from home?

Self-employed people are allowed to claim household costs that relate to the running of their business if they work from home. This will help reduce the amount of tax you need to pay, so it’s well worth getting to grips with what you might be allowed to claim for. We go into more detail about common expenses for eBay sellers in a separate article, but in terms of working from home it often includes things like:

• Electrical costs (such as lighting)
• Gas and heating
• Maintenance and repairs
• Internet and telephone costs

An accountant can help with this and offer advice on where you could be taking advantage of tax relief and allowable expenses to make sure your business is being as tax efficient as possible.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Paying Tax as an eBay Seller appeared first on The Cheap Accountants.

BiKs are a form of added benefit your employer has given to you and if this appears on your tax return, it means that at least some of the benefits you’re receiving are taxable. It’s important to understand what the information on your payslip means so you can make sure you’re paying the right amount and type of tax.

What is a Benefit in Kind?

Benefits in Kind are essentially extra perks that employers can give their employees in addition to their pay. These are either free of cost to the employee or something that is significantly discounted for them.

To qualify as a benefit for tax purposes, these are things which benefit the employee personally rather than goods or services which relate to the work they do.

You might also see them being referred to as ‘fringe benefits’ or ‘P11D benefits’ because this is the name of the form employers use to report BiKs to HMRC (although the reporting rules are changing – more on that later).

BiKs aren’t a legal obligation, and employers can choose whether or not they want to give staff these types of benefits.

Common reasons why an employer might choose to give an employee Benefits in Kind include:

• Attraction and retention of staff: Employing top talent and encouraging them to stay loyal to the business
• Supporting an employee in their role: If somebody has to travel a lot for their job, for example, a company car or personal fuel allowance could be given as a BiK
• Employer reputation: Building up a good reputation as an employer will also help attract and retain talent and help a business stand out in the job market

Other examples of benefits in kind include:

• Private healthcare
• Work-from-home allowance
• Childcare/childcare vouchers
• Work phone
• Living accommodation
• Non-business-related travel expenses
• Non-business-related entertainment expenses
• Cycle-to-work support
• Bonuses
• Interest-free loans
• Share options

Gifts employers give to their employees can also qualify as a benefit in kind if they’re worth more than £50 each, and total more than £300 in a tax year.

Do I need to include Benefits in Kind on my tax return?

The tricky thing about BiKs is that yes, they need to be reported on your tax return if you need to submit one. This is because some BiKs are taxed in order to prevent them from replacing pay or salary. Although they aren’t actually money, HMRC still considers them to have financial value, which means they are liable for Income Tax and National Insurance (NI).

The amount of tax you will pay is based on the taxable value of the benefit. This taxable value is added to your overall taxable income so you can then pay the necessary tax and NI, which is why BiKs appear on your return.

P11D and P11D(b) forms

Employers must inform HMRC of any BiKs their employees receive, either by completing a P11D form, or through payroll software. They must also submit a P11D(b) form at the end of each tax year to let HMRC know how much Class 1A National Insurance needs to be paid.

Normally, your personal BiKs information is then pre-filled onto your tax return for you via the correct tax code. However, it is super important to double-check that it’s correct. If you spot any mistakes, you can let HMRC know so you don’t end up paying too much or too little in tax or NI.

Making sure your benefits are reported correctly is also needed to make sure you’re on the right tax code for all other tax purposes.

Payrolling for Benefits in Kind

From April 2026, payrolling of benefits will become mandatory for most types of BiK although it is still voluntary for employers up until that point.

Payrolling of Benefits in Kind is where BiKs are reported by employers in real-time through whichever payroll system they use. This means that the employee then pays tax and NI at source from their gross taxable income.

The payrolling process is designed to simplify and digitise the reporting of BiKs and payment of tax and NI on them. Currently, the use of P11D forms and changing BiK recipients’ tax codes is time-consuming and causes an unnecessary lag between when BiKs were received and when tax and NI are subsequently paid on them.

How an accountant can help

Understanding benefits and taxes can be complicated, especially when you’re busy doing what you do best. That’s why, if you can afford it, we recommend enlisting the help of a qualified accountant to complete your tax return for you.

Once you have provided everything your accountant needs to complete your Self Assessment, they can then make sure all the necessary details are recorded and reported accurately and within the Self Assessment deadline.

They’re also experts in their field and it’s an accountant’s job to stay ahead of the latest changes and updates to tax rules, regulations and processes. This means they can help you better understand things like payrolling benefits and how they apply to you.

If you need more help, we have lots of tips and advice to get you started. Need an accountant? Learn more about hiring one today.

The post What Do Benefits in Kind Mean for my Tax Return? appeared first on The Cheap Accountants.

HMRC requires you to report all financial periods, whether profitable or not, so they know you have nothing to pay.

Beyond the legal obligation, submitting a loss return can actually work in your favour – you may be able to carry the loss back to offset against previous profits and claim a rebate, or carry it forward to reduce a future tax bill.

This article explains how both options work.

Do I need to submit a tax return even if I don’t make a profit?

Yes, even if you make a loss during a financial period, you still need to send a tax return for it so that HMRC know!

Despite their sometimes-scary sounding letters, HMRC can’t actually read minds, and will assume you have tax to pay unless you complete a tax return saying otherwise.

What if my business has stopped trading?

You won’t need to submit a tax return anymore if you cease trading and de-register the business, although you will need to submit returns up until the end date of the business. This indicates to HMRC that you have no plans to make any more taxable earnings from that business in the future.

You’ll also need to make sure you de-register the business with HMRC, so they know what time period the final return for that business should cover.

Will I get any money back if my business makes a loss?

Apart from the fact that you have to, submitting a tax return to show HMRC the loss you made still has its uses.

You might be able to carry the loss back

Businesses pay tax on the profits that they make, but this amount can change from year to year – sometimes quite a lot.

If you make a profit one year and a loss the next, you might be able to carry that loss back into the previous financial period. This is good because:

• Carrying a loss back means you can offset it against those profits.
• This reduces the amount of profit in that period, which in turn reduces the amount of tax that’s due.
• If you’ve already paid your tax bill for that period, offsetting this year’s loss against it means you can claim back the difference as a rebate.

Or maybe even carry the loss forward

Instead of carrying the loss back into a previous financial period, you may also have the option of carrying it forward into a future tax year.

The direction of time travel might be different here, but the principle remains the same. Carrying a loss forward means it can potentially be used to reduce next year’s upcoming tax bill, and with various rising costs, every little really does help.

So, in other words, submitting a tax return even when you’ve made a loss can be a nifty little cost-saving exercise, not just a legal obligation.

For more detailed information about carrying losses backward or forwards into alternative accounting periods, visit the government website. There are specific rules and regulations that you’ll need to be aware of if transferring a loss for tax benefits is something you plan to do.

Find more tips and advice for your business on our website, or tap into our guide on hiring the right accountant.

The post Do I Still Send a Tax Return if I Made a Loss? appeared first on The Cheap Accountants.

As soon as the tax year ends on the 5th of April, you can file your return for that period straight away.

Importantly, submitting early doesn’t mean you have to pay your tax bill any sooner – the payment deadline stays the same.

This article covers the benefits of filing early and some tips to help you get prepared.

How soon can I submit?

As soon as the tax year ends, you can submit your tax return for that period. So, once the new tax year starts on the 6th April, you can file your return for the previous tax period straight away.

Does that mean I’ll need to pay my tax bill earlier?

Not at all. Submitting your tax return earlier doesn’t change the payment deadline for paying your tax bill to HMRC, so you won’t need to worry about that.

The benefits of submitting a tax return early

Although you do not have to submit your tax return early, there are lots of very good reasons why taking this approach can be beneficial for you and your business.

Submitting your tax return earlier makes the process less stressful

As with most tasks that have a hard deadline attached to them, the tax return process is far less stressful when you leave plenty of time for it. Getting it done early and out the way is even better.

There’s less risk of errors or accidental omission

Submitting your tax return well ahead of the deadline allows you enough breathing space to complete the process accurately and thoroughly.

When you leave it until the very last minute and time isn’t on your side, it’s far easier to make mistakes or overlook information. These kinds of avoidable errors can cause all sorts of hassle later on. Nobody wants a scary-sounding letter from HMRC.

Improve financial planning and forecasting

The earlier you submit your tax return, the sooner you’ll know how much you owe on your tax bill. Once you know that information, you can plan your payments and spending for the year ahead more efficiently.

You can factor your tax bill into your outgoings and therefore create more accurate forecasts and protect your cash flow more effectively.

Although, a note here! Ideally, you’ll already have a rough idea of how much you owe, and be setting enough aside to cover it. This is much easier to do if you use bookkeeping software which keeps you up to date on your current tax liability using your bookkeeping figures

Faster access to tax refunds

If you’re due a refund (otherwise known as a tax rebate), you’ll receive it sooner if you submit your tax return early. So, if you have everything you need to file your return, this is a great reason to get it done in good time. It’s particularly common for those who work as a subcontractor!

You’ll never miss the submission deadline

This one goes without saying but when you submit your tax return early, you’ll never be at risk of missing HMRC’s notorious deadline.

In case you need a reminder: the deadline for your online tax return is midnight on January 31st for online returns, or October 31st for paper returns. If you do miss the deadline, you’ll receive a late filing penalty of £100. The penalty amount increases the longer you leave it. You will also receive a separate fine for late payment of your tax bill.

Tips on how to prepare for an early tax return submission

If you are going to get yourself ultra-organised and submit your tax return early, we’ve got some tips that will help you get well-prepared.

Keep good bookkeeping habits all year round

Thorough bookkeeping is the bedrock of successful accounting, especially when it comes to completing your Self Assessment tax return. If you stay on top of your accounts and keep them up to date all year-round, the tax return process should be a breeze.

Set time aside to dedicate to the task

This might seem like a simple suggestion but you truly can’t underestimate the value of undivided focus when it comes to doing your tax return. Remove yourself from any other distractions and concentrate on the task at hand to avoid unnecessary stress or errors.

Collect all the information you need beforehand

Write yourself a checklist of things you’re going to need for your Self Assessment before you sit down to complete your tax return so you’re organised and equipped. This includes things like your National Insurance number and your Unique Taxpayer Reference (UTR).

Seek help from an expert accountant

Although completing your tax return yourself is entirely possible, the (many) benefits of hiring an accountant to do it for you are invaluable. Leaving it to the professionals will save you significant time and will remove the responsibility so that you can concentrate on other matters, like growing your business.

If hiring an accountant all year round isn’t something your budget can accommodate just yet, don’t worry – many accountants will offer an ad hoc service that just covers your Self Assessment tax return for a flat fee.

Our advice is to shop around for an accountant, and do your research to find the right support to meet your needs (and spending limits).

The post Can I Submit My Tax Return Before the Deadline? appeared first on The Cheap Accountants.

But don’t worry, we’re here to help you through the process, answer any questions you have and highlight the business benefits of getting a tax return out of the way early.

What is a Self Assessment tax return, and who needs to file one?

Self Assessment is a system used by HMRC to collect income tax. If you’re self-employed as a sole trader (with earnings over £1,000), in a business partnership, or you’re the director of a limited company, you will need to submit a Self Assessment tax return.

If you haven’t submitted a Self Assessment before, the first thing you need to do is register with HMRC.

It’s worth noting that once you’ve filled out the online form, it can take a while to receive the registration confirmation letters. So, if you’re in a hurry, be aware that this can cause unexpected delays before the registration deadline on 5th October. (That’s the October which follows the end of the tax year that you need to submit a return for).

How do I submit my Self Assessment?

If you’re running your business as a sole trader (or you earn income through other avenues such as renting out a property), you can file your Self Assessment online using the Government Gateway website.

You’ll need to file your online Self Assessment by the 31st January (the January after the end of the tax year that you need to submit a return for). But it’s always a good idea to get it submitted as early as possible (we’ll go into more about this later).

What if I can’t submit my Self Assessment online?

In certain circumstances (such as for partnership tax returns, or if you must submit for a trust or estate) you will need to submit your Self Assessment tax return by post or through HMRC-approved commercial software instead.

To submit your Self Assessment by post, you’ll need to complete an SA100 form. Depending on your form of income, you may need to send extra information with your submission, so be sure to check out the full list on the HMRC website for further details.

Your paper Self Assessment must be posted to, and received by, HMRC before midnight of the 31st October. Yep, the deadline is different for paper returns.

If you need help with your Self Assessment, or simply want to take the stress out of the process, you can always appoint an accountant to file your tax return on your behalf.

What is a company tax return and do I need to file one?

If you run a limited company, then you’ll also need to have company tax returns on your radar. A company tax return is used to work out how much Corporation Tax the company needs to pay to HMRC.

If you run your business as a limited company and receive a ‘notice to deliver a Company Tax Return’ from HMRC, you must file a company tax return (regardless of whether the company made a profit or loss).

You won’t need to submit a company tax return if you are self-employed as a sole trader though!

How do I complete a company tax return?

Before you can complete your company tax return, you’ll need to prepare your annual accounts. It’s just one of the reasons why good bookkeeping records are so important!

If you’re not sure when your financial year starts and ends, don’t worry, you can check the dates using your Government Gateway account.

To complete your company tax return, you’ll need to file a CT600 form with HMRC, and your accounts with Companies House.

When do I need to submit the company tax return?

The deadline for completing your company tax return is 12 months after the financial year it covers. If you miss the deadline, you will receive a penalty which increases the longer it remains outstanding.

The benefits of an early tax return

Wherever possible, it’s best to submit your tax return ahead of time. As well as the peace of mind it brings, early filing has a number of business benefits.

Preparing for early submission means you have another opportunity to identify any early. This gives you plenty of time to rectify any errors, and reduces the risk of getting penalties.

Filing ahead of time also gives you a chance to review your expenses with your accountant for potential missed claims, helping you to reduce your upcoming tax liabilities, and budget more effectively into the financial year.

In the event of a tax refund, you will also get your money back faster from HMRC if you submit early! Having this useful cash flow injection ahead of time allows you to effectively plan your spending and focus on the things that matter most to you or your business.

Fine more help with your tax return in our information hub, or get help from an accountant.

The post When Should I Submit my Tax Return?  appeared first on The Cheap Accountants.

Some business owners choose to undertake their tax return in-house by themselves or with an employee, whereas others will leave it in the capable hands of a qualified accountant. Whichever route you choose, it’s essential that your bookkeeping is accurate and up to date so that the tax return can be filed correctly.

Bad bookkeeping habits lead to errors and omissions which can, in turn, lead to penalties from HM Revenue & Customs (HMRC). The moral of the story here is to ensure that your bookkeeping is up to scratch so that you can submit your Company Tax Return on time with maximum precision and minimum stress.

In this article, we share the good bookkeeping habits you need to ensure your tax return runs smoothly each year, regardless of who is submitting on behalf of your business.

Keep a checklist of everything you need to cover

To file your Company Tax Return and pay your Corporation Tax, you’ll need to fill out and submit a CT600 form. The CT600 is notoriously complicated in parts and there’s a list of strict criteria that must be covered for compliance, including (but not exclusive to):

• Income and turnover
• Profit and loss for the financial year
• Tax reconciliation
• Tax deductions
• Any tax relief you’re claiming

Keeping a full checklist of everything you need to cover means you’ll be able to tick all the necessary boxes in your bookkeeping throughout the year. It goes a long way towards ensuring all the information you need is to hand when it comes to submitting your return. If you fail to comply, you could find yourself facing a penalty from HMRC.

Don’t worry, this isn’t something you’re expected to rattle off the top of your head each time the deadline looms. HMRC has actually put together a comprehensive guide to CT600 to support you through the process. It includes what you must do to comply, and how to carry out some of the more complex calculations. Or alternatively, you could pass the responsibility onto a qualified accountant – but more on that later.

Understand (and complete) your statutory accounts

Your statutory accounts are the accounts you produce at the end of the financial year. These must be sent to HMRC as part of your Company Tax Return, so you need to ensure that all of the relevant information is present and correct – this starts with good bookkeeping.

Guidance from HMRC stipulates that your statutory accounts must include:

• A balance sheet – this documents the value of “everything the company owns, owes and is owed” on the final day of the tax year.
• Profit and loss account – this records your sales, running costs and the profit or loss you have made over the financial year.
• Director’s report, unless you qualify as a ‘micro-entity’ (a company with a turnover of £632,000 or less, 10 employees or less, or £316,000 or less on its balance sheet).
• Any additional notes about your accounts that might be relevant.

Good bookkeeping habits throughout the year will make preparing your statutory accounts significantly easier than if you’re having to scrabble them together at the last minute.

Invest in cloud-based bookkeeping software

Bookkeeping is like anything else – you need to have the right tools, skills, and resource to hand if you’re going to do it well.

One of the most effective things you can do to bolster your bookkeeping and streamline the Company Tax Return process is to invest in good cloud-based bookkeeping software. This will allow you to take advantage of features and applications that simplify and automate so many of the processes where it’s easy to go wrong.

Here are just a few of the many benefits of using cloud-based bookkeeping software:

• Access your accounts at any time, from anywhere with an internet connection so you can do your bookkeeping on the move.
• Integrate with applications like PayPal, as well as your personal and business bank accounts.
• Take advantage of multi-user access so that more than one person can work on your accounts at any given time.
• You can automate processes (e.g., invoices and payroll) and set up automated reminders.
• Data will be stored on a secure cloud server and backed up regularly.

Enlist the expertise of a professional bookkeeper

Great bookkeeping is no mean feat, especially for business owners who are often spinning multiple plates at any one time. That’s why, if you can, we’d recommend enlisting the skills of an experienced bookkeeper who can save you valuable time. They’ll also have a good understanding of what the data should look like, helping to further reduce the risk of errors.

A professional bookkeeper has insight into the accounting industry and will also be able to support you with using your bookkeeping software. Working with a bookkeeper is another way to protect yourself against stress headaches and any trouble with HMRC.

Hire the skills of a good accountant

As we mentioned earlier, the Company Tax Return process can be pretty complex. For example, you’re required to make sure that all information in your CT600 is reported in Inline eXtensible Business Reporting Language (iXBRL).

Understanding and submitting your information can be super time-consuming and stressful, which is why we’d always recommend hiring an accountant to help you out. An accountant will also be able to help out in other areas. For instance, suggesting a budgeting strategy that ensures you’ve got a cash cushion to pay your Corporation Tax bill, and helping you claim for all your allowable expenses.

If you don’t want to hire two separate services for bookkeeping and accounting, look for an accountant that can take on both tasks. That way, you’ve got ultimate peace of mind when it comes to Company Tax Return time.

Need more help? Get an instant quote for accounting services, or get more information on comparing accountants.

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The Self Assessment deadline, it’s that time of year again that all companies big or small dread. It’s no one’s favourite thing to spend time on when you’d rather be making plans for the business.

However, it is essential that it’s done, on time and accurately to avoid any penalties or investigations that will start the year off on a downer.

Who needs to send a tax return?

There are many reasons why you might have to send a tax return. You will need to send a tax return if you are self-employed, earn more than £2,500 in untaxed income, have an income from savings or investment of more than £10,000, have income from dividends of more than £10,000, have sold shares or have income from abroad.

For a full list of people who need to send a return to see if it applies to you, you can take a look here.

File on time

Some people just forget. It happens. Unfortunately, for something as important as the tax return, there is a penalty to pay for late submissions which is currently £100 if it’s under three months late. The penalty can go up if it’s submitted any later than that.

You’ve still got a few weeks to get everything in order and the sooner you do it the sooner you can get back to focusing on the business.

How to submit

If you’re new to the business world and this is your first Self Assessment deadline, it might seem a little daunting. However, as long as you leave yourself enough time to get all the information ready, it’ll be a huge weight lifted. Make sure you’ve got all your financial records and details of expenses to hand when you start your submission. You can start your online submissions here.

Making Tax Digital

While the annual tax return might be a business nightmare, the Government’s initiative to shift from annual to quarterly tax returns means that businesses are going to have to get used to the process on a regular basis.

Making Tax Digital (MTD) will hit people in 2019, so now’s the time to make the process as streamlined as possible for your business so it’s not so much of a shock.

If you get used to managing your bookkeeping and invoicing online before the deadline, MTD will be less disruptive for your company. This could mean upgrading to cloud based accounting software like Pandle, which will make this transition a lot easier.

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