No-one likes doing their tax return, however, with many of us potentially having unexpected time on our hands now could be a good time to get it done. In addition, if you are self- employed or running a small business, we appreciate that this is a very difficult time, having your latest tax return completed will help you to demonstrate your income and assess what government help you may be eligible for.
Whilst Resolve Financial Solutions do not provide tax advice, when it comes to planning your finances and mortgage advice, your tax return is very important, particularly for those that are self-employed and business owners. To help you get ahead with your return we have put together some information you may find helpful:
You can complete your tax return from the 6th of April. The deadline for paper returns is the 31st of October. The deadline for online submissions is 31st January. We would recommend not waiting until the deadline to get your tax return done but to start as soon as you can. This means you:
- Understand your tax liability and can plan your finances accordingly.
- Know what your income is if you need to request government help during this time.
- Don’t have to rush around to get the information in January, when you are up against the deadline.
- Are able to provide accurate figures to obtain mortgage advice.
If you are applying for a mortgage in the next twelve months your annual income figures from the previous year will be useable for mortgage purposes for a maximum of six months after the April i.e. your 2017/2018 self-employed income figures will be accepted by the majority of lenders until the 31st October 2019. If you are applying for a mortgage after this date, then you will need to provide your latest years’ figures.
Deferring your tax payment
Due to the impact of Coronavirus, this year, you can defer your income tax payments. If you have income tax payments due in July 2020 under the self-assessment system, you can defer them until January 2021. (See Self-assessment tax payments delayed).
Coronavirus – if you’re self-employed
If you are self-employed with profits of less than £50,000 and your income has dropped because of coronavirus, you might be eligible for money from the government. You could get 80% of your average profits up to a maximum of £2,500 per month. This is called the Self-employment Income Support Scheme.
Your rights as an employee or self-employed
Martin Lewis has put together a useful guide for employees, and the self-employed during this time. It covers questions such as your rights as an employee, self-employed, who can be furloughed, freelance workers, Directors of Ltd companies, etc.
Contact us today on 01932 943028, to discuss how we can help work with you and your accountant when completing your tax return so that you have all the information needed for planning your future finances or a mortgage application.
*Your home may be repossessed if you do not keep up repayment on your mortgage.
*The Financial Conduct Authority does not regulate Tax Advice.