Self-assessment tax bill worries, what can you do about them?

Self-assessment tax bill worries, what can you do about them?

Self-assessment tax bill worries, what can you do about them?

Anyone who operates as a sole trader knows that you must complete a self-assessment tax return each year and submit it by the 31st of January of the following year.

This means that many sole traders are now eagerly working away on their self-assessment return, in order to have it submitted in time for the end of January 2023.

For many though, submitting a self-assessment return is only half the battle – the other half comes when you actually have to pay the bill! Although most sole traders have an idea of how much tax they might pay and save through the previous year for it, you can sometimes receive a tax bill you cannot quite cover. This can be an alarming turn of events and leave you feeling stressed out.

But what can you do if this happens to you?

Get expert advice asap

When it comes to sole trader accounting and tax problems, one of the best things to do initially is to get expert help. This will not only give you the chance to talk the issue over with a qualified accountant but also stop you from having to deal with it all alone. In addition, speaking with a professional accountant might throw up some ways to handle the situation you might not have thought of alone.

Try to save extra money toward your self-assessment bill

This is another good tip if you receive a tax bill that leaves you struggling to pay it. It makes sense to take a breath, sit down calmly and look at your business accounts. Try to dig down into any expenses you have to cover each month and find ways to reduce them. This can save you extra cash which you can then put toward your tax bill.

In addition, you could also look at ways to earn more money as a sole trader to help bring in more funds. This could be anything from raising your usual rate slightly to working longer hours temporarily to resolve the issue.

Make arrangements with HMRC

If you try the above tips but are still left feeling you cannot pay the tax bill you have received after you’ve completed your self-assessment, the best thing is to contact HMRC directly. If you explain the situation to them, they will usually be fairly understanding and allow you to set up a payment plan to resolve the problem. This basically sees you arranging to pay the bill off in monthly installments, rather than settling it all in one payment.

Tax help for sole traders from SQK Accountancy

If you are a sole trader in Manchester and need more help around tax, let SQK Accountancy come to the rescue. Our team of experienced staff can advise on how to proceed with any tax bill issues and offer guidance on how to avoid them moving ahead. Contact us for more details.

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