With electrical businesses and professionals required to submit their tax Self Assessment by January 31 2025, HMRC provides five top tips you should follow to avoid last-minute stress or penalties.
1. Untaxed income
If you received any untaxed income in 2023-2024 then use the ‘check if you need to do a tax return’ tool on GOV.UK to see if you need to submit one. If you do, and if you’ve never completed a tax return before, you’ll need to act quickly and register for Self Assessment. Once you’ve registered you’ll get a Unique Taxpayer Reference which is needed for your tax return.
2. Subcontractors
Ensure you’re registered under the Construction Industry Scheme (CIS). The scheme requires contractors to deduct money from your payments and pass it on to HMRC. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered. There’s also a YouTube video to explain invoicing for materials for CIS contractors.
3. Record keeping
HMRC requires you to keep records, such as details of your income and expenses, including invoices, receipts and bank statements. It also makes completing your tax return and calculating taxable income easier and more accurate.
4. Claim expenses
Don’t forget to claim allowable expenses such as tools, equipment, travel costs and protective clothing which can help reduce your tax bill.
5. Avoid penalties
Don’t miss the tax return and payment deadline of 31st January 2025. If you need help between now and the deadline then make full use of HMRC online services, information on GOV.UK and YouTube so you can get it completed on time.
Tax bills
Completing your tax return early means you’ll find out how much you owe (if anything) and can budget ahead of the payment deadline.
Get more Self Assessment support and advice here
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