Tax doesn't have to be taxing - 5 Top Tips to take the stress out of your next tax return

So, was your new 'tax year resolution' this year to be more organised, make sure you kept your records up to date and submitted last years tax return way ahead of the January 31st deadline?

Here are 5 top tips to help you keep your new 'tax' years resolution this year

Number 1: Keep all your receipts

So many small business owners forget to keep their receipts which means they lose out on valuable expense claims throughout the year.

Top tip: Photograph them on your phone as soon as you receive them so even if you lose the actual receipt you can still claim

Number 2: Keep a track of your mileage

If you use your car or a van for business you need to keep up to date records of your mileage. One of the simplest ways of doing this is to buy a mileage book - Amazon sell them really cheaply. Then, at the end of the month, you simply look at the log and enter it into your bookkeeping software or spreadsheet.

Or, if you want to put that smartphone of yours to use, consider downloading one of the many mileage apps for both Apple and Android users. Here is an list of some that are available - Take me to mileage trackers

Top Tip: Track your mileage every day

Number 3: Keep you personal and business bank accounts separate

Even if you are a sole trader it's important to keep your personal and business finances separate and as a Limited Company (which is a separate legal entity) it is mandatory.

It keeps it easy for you to track business expenses and income separate and distinct, it looks (and is) professional and as your business grows it helps you and your bookkeeper monitor and manage your finances without having to decide which transactions are personal and which are business. In the short, medium and long term this WILL save you money.

Top Tip: Set up a business bank account

Number 4: Keep your tax money safe

Whatever you do, don't spend money that isn't yours. Set aside money each month to cover your taxes and National Insurance contributions - put it in a separate deposit account so that it can be earning you money throughout the year. Remember that you may also have to make payments on account - this is where you pay HMRC in advance.

Alternatively, as a sole trader you can set up a budget payment plan with HMRC

Top Tip: Make sure you have planned for your tax liability

Number 5: Make sure you use a good bookkeeper

Of course you knew I would say that, but let me give you some reasons why!

Keeping your finances up to date is time consuming and can sometimes take a back seat when you are busy. You also have to keep up to date with all the latest regulations, keep track of your finances so you can make important decisions about spending and also have time outside of your business to reap the rewards of your success.

A good (or even great) bookkeeper will be there to support your business, they become a trusted ally, a true confidant and a really good source of advice - after all they are dealing with businesses just like yours every day.

They save you money by helping you avoid costly mistakes, help your business grow and give you back time to devote to your customers or just enjoy your life outside of work - after all they are experts in helping businesses just like yours.

Top Tip: Get a really good bookkeeper, one that you feel is right for YOUR business and who takes an interest in what you are achieving - they will become your biggest cheerleader!

I hope you have enjoyed reading this and if you want a chat about anything from self assessment tax returns to monthly accounts get in touch.

Mint Green has absolutely no affiliation with any of the products or services mentioned in this blog.