The 31st January tax deadline has come and gone. If you made the deadline—well done! If you didn’t, don’t panic—there are still steps you can take to get back on track. But either way, now is the perfect time to start planning ahead so next year’s tax return is stress-free and straightforward.
By breaking the process into small, manageable steps throughout the year, you can avoid the last-minute rush and possibly reduce your tax bill in the process.
Let’s dive into the best ways to stay ahead of the game for the 2023/2024 tax year.
1. Understand the New Tax Year and Key Dates
The UK tax year runs from 6th April to 5th April. The tax return you’ll submit by 31st January 2025 will cover all income and expenses for the 2023/2024 tax year.
Here are the key dates you need to keep in mind this year:
📅 6th April 2024 – New tax year begins
📅 5th October 2024 – Tax Deadline to register for Self Assessment if you’re self-employed or have a new source of income
📅 31st October 2024 – Paper tax return deadline (if not filing online)
📅 31st January 2025 – Deadline for online tax returns and any tax payments
Make a note of these dates in your calendar or set reminders on your phone to stay on top of things.
2. Review This Year’s Return (or Get Help If You Missed the Tax Deadline)
If you struggled with this year’s tax return, it’s important to figure out what caused the delays or confusion. Ask yourself:
- Did you have missing paperwork?
- Were you unsure about certain income or expenses?
- Did you leave everything too late?
If you missed the tax deadline, contact HMRC as soon as possible to file your return. There may be late penalties, but the sooner you file, the lower the potential fines. If you’re feeling overwhelmed, an accountant can help you file accurately and efficiently.
3. Set Up a System for Tracking Income and Expenses
Keeping accurate, up-to-date financial records is one of the easiest ways to make tax season painless. If you’re self-employed, a landlord, or have side income, regular record-keeping is essential. Here’s how you can stay organised:
Track Income and Invoices
Record every payment you receive throughout the year, whether it’s from clients, tenants, or other sources. Use a spreadsheet or accounting software to keep everything in one place.
Keep Receipts for Expenses
Tax-deductible expenses can reduce the amount of tax you owe, so it’s important to keep a record of them. Examples include:
- Travel expenses (e.g., mileage, train tickets)
- Office supplies (e.g., laptops, stationery)
- Professional fees (e.g., training, subscriptions)
Take photos of receipts and store them digitally so you don’t lose them.
Use Accounting Software
Tools like Xero (which we recommend at Blue Spire), QuickBooks, or FreeAgent can automate much of your record-keeping. They connect to your bank account, categorise transactions, and generate reports, saving you time and effort.
4. Set Aside Money for Your Tax Bill
One of the most common tax problems is being caught off guard by a large bill. To avoid this, you should regularly set aside a portion of your income to cover tax and National Insurance.
💡 Tip: Aim to save 20-30% of your income. You can adjust this based on your tax rate, but it’s better to over-save than under-save. Some people find it helpful to open a separate savings account just for tax payments.
5. Make the Most of Allowances and Tax Reliefs
There are several ways to reduce your tax liability by taking advantage of legal allowances and reliefs. For example:
- Personal Allowance – You can earn up to £12,570 tax-free (for most people).
- Marriage Allowance – If your partner earns less than the Personal Allowance, you may be able to transfer up to £1,260 of their allowance to you.
- Pension Contributions – Contributions to your pension are tax-deductible.
If you’re unsure which reliefs apply to you, an accountant can help you identify opportunities to save on tax.
6. File Early and Avoid the Last-Minute Rush
Many people wait until January to start thinking about their tax return, but this is one of the biggest mistakes you can make. Filing early has several benefits:
✅ Avoid stress – No more panicking about tax deadlines
✅ Know your tax bill early – Giving you time to plan your payments
✅ Faster refunds – If you’re owed a tax refund, filing early means you’ll get it sooner
✅ Time to fix errors – If there are any mistakes, you’ll have plenty of time to correct them
You can submit your tax return as soon as the tax year ends on 5th April 2024, so why not set a goal to file it before summer?
7. Consider Professional Support
If you find tax returns confusing, time-consuming, or stressful, you’re not alone. Many people benefit from working with an accountant who can:
- Ensure accuracy – Reducing the risk of errors or penalties
- Identify tax-saving opportunities – Such as allowances and deductions
- Keep your finances organised – Helping you stay on top of income and expenses
At Blue Spire, we work with clients throughout the year to provide tax advice and support. The earlier you get started, the easier and more efficient the process will be.
Don’t wait until the last minute—let’s get things sorted early!
Final Thoughts
Planning ahead for your next tax return doesn’t have to be difficult. By staying organised, tracking your finances, and knowing key dates, you can make tax season easy and stress-free.
Here’s a quick recap of the steps to take:
✅ Understand the key dates and set reminders for tax deadlines
✅ Track your income and expenses throughout the year
✅ Set aside money for tax
✅ Take advantage of allowances and reliefs
✅ File early to avoid the rush
✅ Get professional help if needed
Need help with your tax planning? Contact Blue Spire today—we’re here to help you stay ahead and stress-free! 🚀
