How to Avoid January Stress
Every January, thousands of UK taxpayers face a frantic dash to meet the 31 January Self-Assessment deadline. Whether you’re a sole trader, landlord, or company director, late filing can mean penalties, sleepless nights, and missed opportunities to cut your tax bill. The good news? With a little forward planning – starting now – you can keep January calm and penalty-free.
1. Get Your Paperwork in Order
The first step is a classic but vital one: gather your records early. You’ll need details of income from employment (P60 or P45), dividends, rental properties, pensions, and any side hustles. Don’t forget bank interest, cryptocurrency trades, and other investments. Having all this ready makes life far easier for both you and your accountant.
2. Check Your Expenses and Allowances
Next, make sure you’re claiming everything you’re entitled to.
- Business expenses such as home-office costs, professional subscriptions, and mileage.
- Capital allowances if you’ve bought equipment or a business vehicle.
- Pension contributions and Gift Aid donations, which can reduce your taxable income.
Many directors also look at timing: a pension top-up or dividend timing tweak before 5 April could save significant tax.
3. Avoid the Common Pitfalls
Late filing is the obvious one: HMRC fines start at £100 the minute you miss the deadline. But other issues – like forgetting to report untaxed savings income or child benefit if you earn over £50k – can also lead to unexpected bills. Double-check everything now to avoid nasty surprises.
4. Go Digital and Save Time
Making Tax Digital is coming for more taxpayers soon, so consider cloud software that links bank feeds and stores receipts. Digital records mean fewer missing figures and a smoother filing experience.
5. Get Professional Help Early
Accountants are busiest in January, so October is the sweet spot to hand everything over. We can spot planning opportunities – like offsetting capital gains or claiming little-known allowances – before the window closes.
Stress-Free January? Start Today
With the deadline still months away, now is the perfect moment to get organised. Whether you’re in Cambridge, Nottingham, or further afield, GMS Business Accountants can help you beat the rush and keep your tax bill as low as legally possible.
Contact us today, and let’s make January a breeze.
