Did you know the deadline for your self-employed tax return is approaching fast (…. 31st January).
So now is the time to start getting all your information sorted!
As a group fitness instructor/ personal trainer whether part time or full time, its super important to send off your tax return on time, otherwise you could get penalties.
It may seem like an overwhelming and daunting task however we have got you covered with some handy tips of things you can do to make your tax return that much easier.
Keep proper records
As a freelance instructor it is important that you set up a basic record keeping system. This will clearly set out all your income and expenditure for the business. You must keep a record of this for 5 years.
Here is a handy list of things you should keep a record of, although remember things will differ from business to business;
- All sales and other business income, Invoices should correspond exactly to the entries on your bank account.
- All purchases and other expenditure made
- All equipment purchases and sales of assets
- All amounts taken from your bank account for personal use
- All business mileage records.
A spreadsheet, diary, notebook or online bookkeeping websites are all great examples of things you can use to keep proper records of all of your information. If you haven’t done this already, start now!
Get a business bank account
Setting up a business bank account is a must when owning a business. It will keep you legally compliant and will help you appear more professional to your clients. It also makes it easier to log transactions and manage your accounts when everything is in one place. Like with keeping a record, you must keep hold of all bank and credit card statements .
Having a business account will save you from spending hours working out what you’ve spent through the business. What a win!
Keep hold of all of your receipts and invoices
So we have already talked about keeping all bank statements, but this one is another must. However big or small it is, you must keep every single receipt and invoice. You can keep a record of these either in a paper format or an electronic format using tools like accounting software. By arranging them into groups such as mileage and equipment etc, you will be able to clearly keep track of your expenses and be able to compile this all together when sending the return off.
TOP TIP: If you like being organised, find yourself a folder and section it into months and groups!
Keeping hold of these will help keep your records up to date and accurate. And don’t forget, HMRC have the right to impose penalties for inadequate records.
Your self–employed tax return may appear at the bottom of your to do list along with everything else that comes with being a group fitness instructor. However, it’s something that needs to be done and sent on time.
With the tips we have listed above, you will be sure to have collected all the information you need to submit your return. These are things that you can implement straight away and save you time when sending the information off.
