Tag Archives: Self employment

Self Assessment Tax Returns With HMRC

May 17, 2018 By in Freelancing/Self-employed Tags: , , , , , , , , , , 23 Comments

I have been self-employed for 3 years now. I have filled out 2 self assessment tax returns with the HMRC, and I have another due to be filled in the next few weeks. My experience with the self assessment tax returns with HMRC has been good. I found my first experience a lot more scary than the second. Which is perfectly understandable as that was my very first time submitting my tax returns. But since then, it has been great.

HMRC website is user-friendly and pretty self-explanatory. I found the filling out of the tax returns quite straight forward for me. But that may be because I have a degree in Accounting, and I am married to a qualified accountant. So whenever I get stuck, he comes to the rescue. It could also be because of great online resources like Talk Tax. For those who have never heard of Talk Tax before, it is a great website set up in 2014, that provides hard to reach HMRC contact numbers and articles to inform readers about policy change/benefits/ self-assessment and more.

 

Freelancer Image

When it comes to getting important things sorted, like my tax returns, I don’t play. I take it very seriously. I believe in being proactive and not reactive when it comes to tax business. And that has helped me stay on top of my business.

These 2 tips for filling out your self assessment tax returns have come in handy for me, and they may work for you too.

 

Start Early

This is the first and most important tip when it comes to filling out your tax returns. You need to be an early bird, and start early. So when the window opens in April, you get it submitted before the summer months. That way you have the time to spread your tax and national insurance payments (if any). Starting early also means you will have the time to take your time filling out your tax returns properly.

When you leave it all until the last-minute, you start to panic so you rush, and you are more likely to make mistakes. You may also have to go into debt to pay your tax bill if you are not prepared. January 31st is the cut of date for self-employed self assessment tax returns, and many people struggle to pay up their bill before the end of January since most of the money has been spent on the Christmas shopping. Plus January is usually a quite month for most businesses. Which is why I like to get mine done long before then. Don’t leave your tax returns until the last-minute.

 

Keep Records

Starting early would work great if you keep records. Ensure you have a spreadsheet for every invoice you send and for any money I spend or receive. Having records will ensure you fill out your tax returns with the right figures quickly. It makes the process a lot easier.

The last thing you want is to fill out wrong information on your tax returns. That would land you in trouble quickly with the HMRC. Having up to date records means you won’t have to guess any figures.

 

Many people are usually frightened when it comes to anything tax related and I understand why It is because they are not well equipped and usually not informed. There are loads of information around to help you submit your tax returns yourself and if you are unable to do so, you can always hire someone else to sort it out for you.

Remember, if  you don’t complete a Self Assessment return for each tax year before the deadline, you will get a penalty fine. This penalty starts at £100 for delays of up to 3 months but will increase the later you leave it. HMRC may also charge you interest on late payments. So ensure you get your tax returns in before the deadline.

 

How do you find the process of submitting your tax returns? Easy or complicated?

 

*Collaborative post.

Are Entrepreneurs Born or Made

February 7, 2018 By in Freelancing/Self-employed Tags: , , , , , , , , , , , , 51 Comments

For as long as I can remember, the question of whether successful entrepreneurs are born or made has been a subject of debate. I thought I’d give my own two cents to this debate from my own perspective.

Many people go into entrepreneurship for many reasons. Some want to really experience the freedom-based lifestyle that goes a long with entrepreneurship. Others are in just for the fringe benefits that come along with tagging the word “entrepreneur” in their bios.

Whatever may be the reason for diving into entrepreneurship, the end speaks for itself. The true entrepreneurs remain resilient until the very end, while those who are not cut out for it are easily weeded out.

 

Quiz Clothing Image

 

But what makes the real entrepreneurs who they are? Is entrepreneurship something they pick up and train themselves in or are they just born with all the skills, character and talent to be entrepreneurs?

Let’s look it from both sides:

 

Entrepreneurs are born

It could be a gene in their DNA but some entrepreneurs are gifted with the skills that give them an edge in their business. While some have to train for years before they can perfect the art. Born entrepreneurs have natural instincts geared to making their businesses work.

Take for example, having a natural gift in creating quality relationships that always result into sales. It’s not that such a person was trained to be a good communicator. It’s something that flows naturally.  They never have to force themselves to shine in their area of competence. They are excellent at what they do.

Born entrepreneurs are those who recognize that they have a gift and they exploit it; they leverage on it.

 

Entrepreneurs are made

Made entrepreneurs are those who develop the skills needed in order for them to be successful. They know that there is a gap and in order to make their business flourish they have to fill in their lapses. As a result they get retrained, they hire coaches, they read books, but most of all they practice, practice, practice.

The truth is that this is where majority of entrepreneurs find themselves at a point in time. Their success is attributed to the work they put in themselves and as a result their business became a success.

 

If you want to be an entrepreneur and fail to see your lapses or you’re not ready to learn and practice then you will not be successful in your business. You need to be willing to make an effort. Developing yourself takes time and a lot of humility. You need to be humble enough to acknowledge that there is a lot to learn and actually put in the work and take the time to practice.

 

So are entrepreneurs born or made? I believe some are born but most are made. Being born with the right skills and business mindset is all well and good but you need to continue to develop those skills to be a success story.

 

Do you agree? Please share your thoughts in the comments section below.

 

 

error: Content is protected !!