Give Your Accountant And Yourself An Early Christmas Gift
If you've ever been stung by the taxman you'll know how hard it can be, as do I. I run aTelemarketing Company and I have felt the wrath of the taxman! I got the following useful information from an accountant friend of mine and felt it neccessary to share it.
It will be around this time that your accountant will start chasing you quite hard about filing your tax return, if he has not already begun.
Those individuals who are self employed, in a partnership or have revenue that hasn't been taxed at source in the year to 5th April 2011 are required to complete a personal tax return which needs to be lodged with HMRC by 31st Jan 2012. By that day any tax that is due also is needed to be paid over.
If you have formerly finished a tax return the chances are your accountant has been chasing you for a couple of months now but the reminders and chasers will become more frequent between now and Christmas time. The majority of my clients that appear in January will be the same people as last year and they will think that they’re the only people that have left it that late but I’ll guarantee your accountant will be coping with many ‘late arrivals’. If we are able to complete a few returns a bit earlier then life might be a bit more relaxed in January (my wife is used to not seeing much of me in the month of Jan).
But it isn’t all about making things simpler for your accountant! More importantly, imagine how much better you would feel about things if your accountant was able to tell you before Christmas what you are due to pay at the end of January thus easing pressure on money flow. In the current climate, where each pound should be watched carefully, there may be big benefit to planning ahead. You may even be able to buy that special Christmas present after all!
On 31st Jan 2012 you are required to pay the first instalment on the tax due on the year to 5th April 2012. This payment is usually 50% of the tax payable in the prior tax year i.e. Year to 5th April 2011. If profits or earnings are down in the year to 5th April 2012 then your accountant can apply to have the payments on account reduced accordingly. The earlier your accountant gets the data the quicker he can evaluate the position and perhaps take away some of your troubles.
One final point. Because HMRC haven’t issued you with a notice to finish a return does not take away your responsibility to file a return. The entire basis of self assessment is that it’s up to you to judge if you need to make a return. If doubtful request advice. Your accountant shouldn’t charge you for helping you decide your official responsibilities!
Chris Harding runs I Am Telemarketing, and has over 25 years expertise in telemarketing.
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