I wrote a post about filing your tax returns as a freelancer some months ago, and it was well received. So this post is really just a follow-up post, to answer some questions that were asked in the comments and via email.
I set up this blog – Fashion and Style Police in October 2012. And then I knew little or nothing about how bloggers make money. I just wanted an outlet to write. So filing a tax return or registering as self-employed was the last thing As the blog grew, I started getting sponsored posts requests (I wrote all about these in my book, check link directly above) and then I started to think about best ways to send out invoices, registering myself as self-employed and filing the ‘Almighty’ tax returns.
The number question that was asked by many bloggers and freelancers is – “What to do when you have made a mistake filing out your tax return“, followed closely by “How best to keep track of your finances” and “To employ an accountant or not to employ an accountant”.
Here are 3 tips you should answer these questions:
Submit your Tax Returns Early
Submitting your tax returns is the first step in getting the process right because you are more likely to complete your tax return without errors when you submit it early. Panic, rush and anxiety usually leads to mistakes. I like to submit my tax returns by May/June (tax year ends April) after the tax year-end even if I have till January. I like to sort out important stuff quickly. And plus if I do make a mistake on my tax returns, I have 12 months to amend it on the HMRC website. So it is better to submit early just incase there are any errors.
Check and Check Again
I check my tax returns multiple times before submitting, just incase I missed an error or not included a vital information. I usually get a fresh pair of eyes to check with me as well. It is better to be safe than sorry.
Speak with an Accountant
If you are not on top of your finances, to busy to deal with your tax returns or you rather just employ a professional, then speak to an accountant. Sometimes it is best to let the professionals do the work they are trained to do. If you don’t have a budget for an accountant or you are not earning much from your self-employed career, then you may attempt to file your tax returns yourself. I did, and trust me, it is not as difficult as it appears to be. It is quite straight forward, and there are loads of information on the HMRC to guide you. You can aslo call the HMRC office if you need clarification on any tax related issue. The best times to call are Tuesday to Thursday, between 8.30am – 10am, 11.30am – 1pm and 2pm-4pm, but lines are usually open at at 8am Monday – Friday.
Do you struggle with filing your tax returns?
*This is a collaborative post.