Tax return warning because “particularly complex” problems will arise for freelancers
Self-employed workers and small business owners have been urged to “take some time off” over the next few days, as many are expected to file their tax returns over the Christmas period. New research has shown that financial fears have led to ‘sleepless nights’ for 30% of small business owners in the past 12 months and, as such, workers need to prioritize their mental health tomorrow.
Christmas Day itself is one of the most popular days for submitting returns, with official HMRC figures showing that the most popular time for December 25 to complete tax returns last year was between 2 p.m. and 3 p.m., with over 200 people submitting their forms online during the 60-minute window.
However, with two-thirds (69%) of small business owners, or around four million people, reporting that the pandemic has had a moderate to severe impact on their mental health, The Accountancy Partnership urged business owners to make sure they also take a break during the holiday season.
Lee Murphy, Managing Director of The Accountancy Partnership, commented, “While business owners are free to submit their tax returns any time before the January 31 deadline, it is important that they take action. free time, especially in view of past events. two years.
“The pandemic has taken its toll, and paying attention to your mental health is essential to help avoid burnout. “
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“While not everyone celebrates Christmas to the same extent across the country, we urge everyone to take a break and take advantage of the extra holidays we have this year.”
Heeding these calls could prove particularly important over the next few days.
Additional research from The Accountancy Partnership found that only one in 10 (12%) of small business owners who encountered problems sought professional help.
Mr. Murphy continued, “It is recommended that you submit as early as possible to make sure you don’t pay too much tax and to avoid fines for not meeting deadlines.
“This year’s returns will likely be particularly complex. Many companies have used government support during the pandemic, which will require additional accounting.
Myrtle Lloyd, general manager of customer services at HMRC, commented on this.
She said, “We want to help clients get their tax returns the first time.
“We have videos, tips and help sheets available online to help you with your self-assessment. Search “Self-Assessment Help” on GOV.UK to find out more. “
Self-employed workers should not underestimate the importance of properly completing their income tax return, as new economic challenges, such as rising energy bills, interest rates, and reductions in universal credit, could affect them. see them face new difficulties.
The accounting partnership warned that, aside from the added prospect of having to repay part of a previous grant, these challenges could lead to serious solvency issues.
Mr. Murphy concluded, “The time leading up to the tax filing deadline is always a busy time for everyone, and in the face of today’s tough business conditions, it can seem almost impossible to get on top of the financial affairs while ensuring the future of a business.
“Despite these challenges, it is crucial to make sure that the financial affairs are in order in order to avoid paying too much in taxes or being asked to repay the grants you have already received. Those who need to repay part of their SEISS grant will have received a letter from HMRC, so it is important that this paperwork is not ignored or put at the end of the priority list.
“The effects of the pandemic, coupled with Brexit, gas prices and supply chain issues mean that businesses really can’t afford to deal with a cash flow problem because there is no future plans for government financial support. Completing accounts and submitting them on time gives business owners one less worry as Christmas approaches and the New Year begins.
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