Taxes: Month by month guide - How to keep on top of your taxes this year | Personal Finance | Finance

Taxes: Month by month guide – How to keep on top of your taxes this year | Personal Finance | Finance

With the arrival of the new tax year comes a host of changes that will affect how those who are self-employed or freelance complete their tax returns. Many of these rules were announced by Chancellor Rishi Sunak during his Spring Statement to help alleviate some of the pressure brought on by Britons by the cost of living crisis. Getting organized and staying on top of your tax returns can seem like a daunting task without the right knowledge or advice.The Covid pandemic has had a significant impact on the number of self-employed workers in the UK.In fact, according to data from the trade body, Ipse, the number of self-employed Britons fell to around 4.1 million, by the end of 2021, from a peak of five million before the pandemic.So, with the new tax year upon us, GoSimpleTax has given a tip for each of the next 12 months to help individuals stay on top of their finances.READ MORE: WASPI women receive update – ‘further evidence’ to be reviewedJulyFor July, don’t forget your payment on account which will be due this month. As the part-year payment towards your next tax bill it’s calculated when you do your tax return. August The arrival of August provides everyone with a good opportunity to make sure you’re claiming all your business expenses. September If you haven’t already, consider upping your prices to allow for the increased cost of doing business. Though it can result in some uncomfortable conversations you will likely find that most people understand your need to grow prices. October Start to prepare for Making Tax Digital for income, which at this point will be only 18 months away.Freelancers and the self-employed will need to use an approved software to track their income and expenditure in real time.So, if you don’t already use a program to do this now is as good a time as any to start.November As we close in on the end of 2022, consider pensions and investments to secure your long-term financial future and make the most of tax free allowances.Self-employed people don’t benefit from employer contrib utions and nor are they auto-enrolled in a programme. December The self-assessment deadline will be creeping up – it’s at the end of January – and every year there is a rush of last-minute submissions in the hours before the midnight limit.If you haven’t already done your return make sure you get everything sorted.JanuaryThe self-assessment deadline is January 31, 2023, and for the past couple of years, it’s been extended by a month.But this is unlikely to happen again, so don’t rely on an extension.FebruaryIf you have missed the self-assessment deadline, you’ll have an automatic penalty of £100 and you need to act now to avoid larger penalties.Anyone with a valid excuse such as a computer malfunction or issues with HMRC’s service should lodge an appeal without delay.MarchStart to prepare your end-of-year accounts so that this job is less time-consuming in April.You can then use this month to review your accountancy software and reconcile any erroneous transactions.