The annual self-assessment tax return deadline has just passed, and for many business owners, the experience may have been a mad scramble to gather documents, double-check figures, and submit their returns and pay the tax on time.

If that was your situation, you were in good company! HM Revenue and Customs said that 3.4 million taxpayers, almost a third, hadn’t submitted their tax return yet going into the final week before the deadline.

The stress of last-minute filing may have made you determined to get it all done earlier this year. The good news is that with proactive planning, next year’s tax return can be a much smoother process.

Here are some practical steps you can take now to avoid a last-minute rush and enjoy a more relaxed 2025.

1. Review and reflect on this year’s process

Start by evaluating what worked well and what didn’t during this year’s filing. Did you struggle to locate receipts or invoices? Were you unclear about certain tax rules? Taking stock of these challenges now allows you to address them early. Make a list of improvements to implement, such as better record-keeping or seeking professional advice.

2. Organise financial records regularly

Committing to updating your financial records on a regular basis can really help to eliminate last-minute stress. This could involve:

• Digitising receipts and invoices: There are apps and software you can use to scan and store receipts as they come in. Many programs will even categorise expenses automatically, saving you time later.
• Reconciling accounts monthly: Regular reconciliation ensures that your bank statements and your financial records match up. This can really help you to avoid missing something out.
• Maintaining a tax file: You could create a dedicated file (digital or physical) to store documents like business expenses, income records, and correspondence with HMRC. That way everything can easily be found when you need it.

3. Use accounting software

Investing in reliable accounting software can simplify your tax preparation work significantly. Many modern tools will integrate directly with your bank accounts and track your income and expenses. Popular options include Xero and Sage.

4. Understand tax allowances and deductions

Tax rules can change annually, so it helps to stay informed and up to date. Try to familiarise yourself with the allowable expenses, reliefs, and deductions that are relevant to your business. For example, you may be able to claim for home office expenses, equipment, or professional services.

5. Set up a tax savings account

Noone likes paying tax at the best of times, but a large, unexpected bill can cause a lot of financial strain. To avoid that, you could set aside money regularly for your tax. For instance, you could open a dedicated savings account and deposit a percentage of the income received each month.

6. Plan ahead with a tax calendar

Many find it useful to create a tax calendar that highlights the key dates and deadlines that apply to them. Setting reminders well in advance can help to give you more time to prepare and avoid penalties.

These proactive measures can help you turn filing your tax return from a stressful ordeal into a manageable task. By starting early, staying organised, and making good use of technology you’ll save time, reduce stress and allow yourself to focus on growing your business.

If you would like any personalised advice on how to keep your tax records or advice and training on using accounting software, please give us a call and we would be happy to help you!

 

As the UK tax year-end approaches on 5 April, it’s an excellent time for you to review your business finances and explore tax planning opportunities, particularly if you are self-employed. Tax planning can help you to reduce tax liabilities, boost your cash flow and put you in a stronger financial position.

Let’s explore some areas that you could think about.

Capital allowances

One key area to consider is capital allowances. If your business invests in equipment, vehicles, or machinery, you may be eligible for tax relief under the Annual Investment Allowance. Reviewing these purchases before the tax year-end can help make sure that you don’t miss out on a valuable deduction.

Pension contributions

Another potential benefit lies in pension contributions. By contributing to employee or director pensions before the tax deadline, you can potentially lower your taxable profit while promoting loyalty in your staff.

R&D activities

If your company has engaged in innovation, you could be eligible for tax credits under the Research and Development Tax Relief scheme. These credits can provide a significant boost.

Proactive planning now can save headaches later and uncover opportunities to improve your bottom line. Why not give us a call to make sure you’re taking full advantage of the options available to you?

There are only a few days left now to file 2023-24 tax returns before the January 31st deadline.

Failing to meet the deadline can result in penalties as well as interest on tax that’s paid late.

If you are self-employed and usually complete your own tax return, you may find that the 2023/24 tax return requires you to complete extra entries due to basis period reform. There may also be additional tax to pay as a result.

If you need any help with your tax return, please do not hesitate to get in touch and we will be happy to help you.

Barter Durgan can help you with your tax return. Contact us today on 02392 738311 or email us: accountants@barterdurgan.co.uk

 

The start of January marks a time of new beginnings, and for business owners, it’s the perfect opportunity to pause, reflect, and plan ahead. After the whirlwind of the festive season, January offers a quieter moment to consider where your business is headed, how it’s performing, and whether you’re still on track to meet your goals.

Why review your goals now?

Setting goals is one thing – keeping track of them is another. Running a business is often about managing the immediate – urgent emails, pressing deadlines, and day-
to-day challenges. Without a clear plan, though, it can be easy to drift away from your bigger goals. This is why it’s so important to intentionally carve out time at the start of the year.

Why not ask yourself:

•  Are you meeting your financial targets?
•  Have your priorities changed since you first set your goals?
•  Are there new opportunities or challenges you need to plan for?

This kind of review isn’t about dwelling on what’s gone wrong; it’s about making sure you’re steering your business in the direction you want to go. For instance, it can help you clarify what you want to achieve this year. Is it more growth, more stability, or more innovation? It can also help you focus on the areas that truly drive results as well as allow you to prepare for potential problems and have strategies ready to address them.

A word on the role of a budget

Finances often need to be aligned to help you reach your goals. A budget can be an invaluable tool in helping with that. Even if you’ve never drawn one up before, it’s not as daunting as it might sound. There’s no need to make it complicated. A simple budget can help you understand where your money is going, plan for upcoming expenses, and avoid surprises. Start by reviewing last year’s financial performance and based on that set some realistic income and expenditure targets for the months ahead.

Steps to get started

Here’s how to make the most of this reflective period.
1. Review your goals: What were your key objectives last year? Did you meet them? If not, why? Use these insights to refine your goals for the coming year.

2. Set SMART objectives: Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of “I want to grow my business,” aim for something like “Increase revenue by 15% by the end of September.”

3. Plan for action: Break down your goals into actionable steps. What resources do you need? Who will be responsible? Setting milestones along the way can help you track progress.

4. Monitor and adapt: Remember, a plan is only as good as its execution. Regularly review your progress and be willing to adapt it as new challenges and opportunities present themselves.

A resolution worth keeping

January is more than just a fresh start; it’s a chance to be intentional about where your business is headed. Taking the time out for a review of your goals will help to
make sure that your efforts are aligned with your ambitions.

Make this the year you take control of your business’s future. With clear goals, a solid plan, and the discipline to follow through, 2025 could be your best year yet.

 

HM Revenue and Customs (HMRC) have revealed that 4,409 people chose Christmas Day to file their tax returns, ensuring their 2023-2024 tax affairs were in order well before the 31 January deadline.

In total, 40,072 taxpayers submitted their returns over the Christmas break, proving that even amidst the festive cheer, there’s always time for a little financial housekeeping.

Festive filing highlights

The holiday filing statistics offer a glimpse into the habits of those who opted to tackle their tax obligations during the break:

• Christmas Eve: This was the busiest day, with 23,731 returns filed, as some chose to avoid the chaos of last-minute shopping. The most popular filing hour was 11:00 to 11:59, when 3,458 taxpayers submitted their returns.
• Christmas Day: 368 people filed their returns during the most popular hour of 15:00 to 15:59.
• Boxing Day: 11,932 customers prioritised tax returns over leftover turkey sandwiches, with the busiest hour being 16:00 to 16:59, when 1,108 submissions were made.

Why file early?
Filing early can bring peace of mind knowing that the job is done for another year.
However, it can also allow more time for planning how to pay any tax that will be due
on January 31 st .

If you could do with help filing your tax return or are not sure whether you need to fill
one in, give us a call and we would be happy to help you!

See: https://www.gov.uk/government/news/its-a-self-assessment-wrap-for-40000-
festive-filers

HM Revenue and Customs has issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns.

In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the January 31st 2025 filing deadline approaching, fraudsters are likely to step up their activities.

HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.

If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist here that can help you identify a scam.

It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.

HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.

If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.

Volunteers from Barter Durgan delivered pizzas to the main children’s ward at Queen Alexandra Hospital in Portsmouth.

Barter Durgan teamed up with charity Sophie’s Legacy which organises for pizzas to be delivered to patients and relatives on children’s wards at hospitals including in Portsmouth, Chichester, Isle of Wight, Poole NICU and Royal Marsden Hospitals.

Under the banner of “Sophie’s Saturday Night Suppers”, the pizzas are delivered each week.

Emma Zeqo from Barter Durgan said: “Sophie’s Legacy does really important work in supporting parents when they have a child in hospital. Sophie’s Saturday Night Suppers is part of that and is such a great idea and we were very happy to support it.”

Segensworth-based Sophie’s Legacy https://www.sophieslegacy.co.uk/ was set up in memory of Sophie Fairall. Sophie had just turned nine when she was diagnosed with a rare form of childhood cancer called Rhabdomyosarcoma in September 2020. During her treatment, she endured nine rounds of intense chemotherapy and seven weeks of radiotherapy.

Sophie never managed to get into remission and in June 2021, after only eight weeks on a programme of maintenance chemotherapy, she relapsed. With no treatment options left Sophie passed away aged ten, in September 2021, just one year after her diagnosis.

Sophie’s Legacy seeks to enact the changes that Sophie wanted to happen including: a play specialist in hospital seven days a week, improvement to food for children in hospital, parents to be fed when staying with their child, for health professionals to be trained in childhood cancer and for an increase in funding for research into childhood cancer.

An important ethos of the charity is to support families locally who end up in hospital with their child. The support varies depending on each situation but the following are regularly offered on a referral basis:

• Help with transport costs (fuel vouchers, bus or train passes or taxis)
• Clothes when admitted in an emergency with their child
• Birthday parties in hospital for children and parents
• Emotional support
• End of life wishes for children and their families
• Vouchers for meals at the hospital restaurant or shops such as M&S
• Costa vouchers
• Beauty treatments such as nails, haircut or back massage when a parent needs it – this tends to be for the parents who are in for long stays.

The charity also provides hospital wards with:

• Snack and toiletry boxes in every parent room / kitchen
• Frozen meals from Cook
• Art practitioner at Portsmouth Hospital and in the community for children who spend long periods of time in hospital
• Parent packs which contain essential toiletry items, phone chargers, notepad and pen, snack etc.
• A trolley of food, drink and toiletries seven days a week at QA Hospital for parents on CAU and children’s wards

Following the Bank of England’s decision to reduce the base rate from 5% to 4.75%,
HM Revenue and Customs (HMRC) have announced a reduction in their late
payment interest rates.

HMRC interest rates track the base rate. Late payment interest (payable if you pay
tax late) is set at base rate plus 2.5%. Repayment interest (which HMRC pay you on
refunds or overpayments) is set at base rate minus 1%, with a minimum rate of
0.5%.

Therefore, the late payment interest rate will reduce to 7.25%. Repayment interest
will reduce to 3.75%.

The reductions come into effect from the following dates:

• 18 November 2024 for quarterly instalment payments; and
• 26 November 2024 for non-quarterly instalments payments.

See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-
revised-after-bank-of-england-lowers-base-rate

HM Revenue and Customs (HMRC) have begun reminding taxpayers that time is
ticking for getting self-assessment tax returns filed in time for the 31 January 2025
deadline.

More than 3.5 million tax returns have already been submitted, however HMRC are
anticipating more than 12 million in total needing to be filed by the end of January.
So, HMRC are encouraging people to submit their return as early as possible.

Filing earlier does have some advantages, such as avoiding a last-minute panic, and
knowing how much any tax payment will be in time to be able to budget for it.

If you need to complete a self-assessment tax return this year but haven’t completed
one before, then you will need to register first before you can send your tax return.
The registration process can take a few days, so it is best to start this in good time
before the end of January.

If you would like any help with completing your tax return, please feel free to contact
us at any time and we would be happy to help you.

See: https://www.gov.uk/government/news/on-your-marks-100-days-to-file-self-
assessment

Companies House have rolled out a new penalties regime as part of a broader effort to boost corporate transparency and combat economic crime, following the implementation of the Economic Crime and Corporate Transparency Act 2023.

This could mean tougher consequences in the shape of financial penalties for companies that don’t meet their obligations, including filing their confirmation statements on time.

More serious offences, such as ongoing non-compliance or fraudulent activity, could lead to civil action, director disqualification, or even criminal prosecution. Companies House have said they will work closely with the Insolvency Service and other enforcement partners to investigate and prosecute offences when necessary.

According to Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House: “Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us.”

What happens if you break the rules?

For minor breaches, such as filing documents late, the result may simply be a fine. The amount of the fine increases depending on the seriousness of the offence and how many times it has already happened. Amounts could range from £250 to £2,000.

Companies House is also adopting a holistic approach to enforcement, which means that they will share intelligence with other bodies. For companies, this could mean that non-compliance could trigger a much deeper investigation, potentially leading to more severe consequences than in the past.

How to stay compliant

To avoid penalties, company directors should make sure they are up to date with their filings and other legal obligations. Here are a few steps to consider:

• Ensure all filings are made on time: This includes confirmation statements, accounts, and any other required documents.
• Respond to any warnings from Companies House: Ignoring these can escalate the situation quickly.
• Keep up to date with any changes: Stay informed about legal updates that might affect your responsibilities as a company director.
• Seek help if needed: If you’re unsure about what’s required, don’t hesitate to seek professional advice.

If you have any questions or concerns about the new regime, feel free to reach out. We’re here to help ensure your business remains compliant with these important regulations.

See: https://www.gov.uk/government/publications/companies-house-approach-to-financial-penalties