tax return and celebration
In the final part of Money Haven’s guide to managing your tax return, Rosie coaches us on how to gather everything together and finally press the submit button. As usual, there is a spiritual air and encouragement to start planning for the year ahead, too.
Read on for the last lesson, and join the chat in the career community forum.
Intention: I love being a woman in modern times who is able to take responsibility for her financials.
Now it’s time to put the information you’ve collected into your tax return.
Your tax return is only complete when you put the information you have already collected into HMRC’s online form, and click submit.
It’s easy to only focus on this part of the process, but it’s actually only the last stage of ‘taking reasonable care’ (what HMRC requires you to do).
It can also be easy to feel anxiety that you’re not doing enough, or not doing it properly. That’s super common with the women I work with.
Yes, you need to understand, to learn what you need to know for your individual business and have a system that works for you, but it’s really not difficult and you can do this.
Often it’s more that you don’t feel relaxed and confident yet and the unfamiliarity can feel uncomfortable, especially when there is a legal requirement and deadline. This is why having an intention, anchor and reward is so important.
Tax Return Deadlines
Tax return deadline:
31 January of the year following the end of the previous tax year
Tax year: 6 April – 5 April following year
Tax due: 31 January
(and 31 July for Payment On Account, more information in Resources)
DOWNLOAD THE TAX RETURN CHECKLIST (LINK IN RESOURCES)
Your tax return works on the tax year, so if it’s your first tax return you’ll only be doing the self employment section for the date you started your business to the end of the tax year on 5 April.
You can save the form part way, there is a progress bar and you don’t even need to pay tax due until the deadline on 31 January.
There is more information in the Tax Return Checklist and a Deadline Planner you can download (links in Resources).
Rosie Top Tip:
The earlier you do your tax return, the earlier you get a refund if you’re due one – especially if you have a job and a business or recently left a job.
Let’s start and don’t forget your reward!
Start with your anchor.
Now take a few long deep breaths into the lower part of your lungs.
If you find yourself losing focus, come back to your anchor.
I like to set a timer every 15 minutes to remind me to take a few breaths and shake my body about and move.
That’s it. You’re good to go.
Are you ready?
Ask a friend to keep you accountable or post in the Sisterhood Community.
2. Get the Tax Return Checklist (link in Resources)
3. Get your Tracker/Spreadsheet/Software Downloads/Documents
4. Get your HMRC Self Assessment log in and password
5. Get your Reward ready
(e.g. put your bottle of Prosecco in the fridge)
6. Make sure you won’t be distracted.
This is a time for phone off and child free.
7. Use your Anchor and focus on your Intention. Breathe.
Why not share in the Sisterhood Community how it’s going for you and what your reward is.
9. Work through, check and finish.
Or do as much as you can and save until you’re finished.
Save a copy and pay tax due by the due date or collect your refund.
Repeat steps 7 and 8 when you need to, and get help if you need it.
Why not post in the Sisterhood Community how you feel and anything you’ve learnt or will do differently next time?
Do the sections that feel easy
I do everything first except the self employment section. Some of my clients prefer to do the self employment section first. Whatever feels easiest, is okay. If it’s your first tax return, go first with what your heart feels is easiest. There’s a link with more information about your first tax return in, Resources, below.
Remember you can save part way and you don’t need to do it all in one session.
Use your Self Assessment Tax Return Checklist.
For the self employment section, refresh your memory by looking back at Week 3: Expenses & Insight.
You particularly need to make sure you’ve got your tax-deductible costs right and put your capital items in the right box (called Annual Investment Allowance). Ask for help if you need it and use your Intention and Anchor.
Now let's go into a bit more detail about step 9
The first part of the form is to tailor it to you personally so you only fill in the sections you need to (employment, self employment, savings interest etc).
This is because the self assessment tax return form is for everyone including millionaires and billionaires.
So most of it won’t apply to you (yet) and some of the questions to discover whether a section is relevant may use jargon words you don’t know. Don’t be put off, read the Tax Return Checklist and ask in the Sisterhood Community or book a session with me if you’d feel better with help.
Once your tax return has been personalised, it will be a lot smaller.
Leave it for a while, and then come back
When you’ve finished and checked you filled the right information in the right boxes, leave it for a while and come back later.
Re-check and then submit.
Pay the tax due or set a reminder to pay in January if you’re doing it earlier.
It’s totally normal to do your tax return earlier than last minute by the way.
Lots of women do.
They’re just quieter about it.
Reward, breathe, insight. Reward yourself, breathe long and deep breaths, receive insight into your spending.
Self employment taxes are income tax, National Insurance Class 2 and National Insurance Class 4 (there is more information in Resources). Tax due will be a combination of all the taxes you need to pay, both business and personal.
Remember, the earlier you submit your tax return, the sooner you know tax due and the longer you have to pay it #comfort #cashflow #adulting.
Plus, if you’re due a refund (often the case if you have a new business and a job/just left a job), the earlier you submit your tax return, the sooner you’ll have that refund money in your bank account.
A heads up about payment on account.
It’s when HMRC asks you to pay your tax twice a year. The first time they ask, it can mean 18 months of tax at once (12 months for the previous tax year plus 6 months in advance) which can be a shock if you’re not expecting it.
It’s another reason why planning for your tax bill (more information in Resources) and doing your tax return earlier is a good plan. Do what you can this year and put a reminder in your calendar to start in spring/early summer for your next return.
celebration and reward
You’ve done it!
So proud of you.
Whether it was a breeze, or you found it a challenge…doing your tax return is a legal requirement and that deserves congratulating yourself and a reward. You’ve stepped up to the responsibility and hopefully discovered something about your business in the process.
Now’s the time to enjoy your reward and CELEBRATE!
Share in the Sisterhood Community what you’ve learnt and how you’re celebrating.
Don’t forget the Resources for next year and well done 🙂
To your financial self care,