Apr

How to get the new tax year off to a good start!

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It feels like it’s only been a minute since we were submitting our 20/21 tax returns, but already the new tax year is here! Which not only means there are a couple of new rules and regulations to look out for, but it’s also time to prepare the 21/22 tax return!

So here’s our breakdown of how to get the new year off to a good start!

File as early as possible

The first thing, and it’s a pretty big one – Just because you don’t have to submit your 2021/22 tax return until the end of January, doesn’t mean that you should forget about it until then!

Not to call anybody out – we’re all guilty of not necessarily being overly proactive when it comes to our tax returns, and we’re under no illusions that it’s not your favourite task in the world, but the quicker you get on top of your tax return, then the quicker you will be aware of your liability and any plans you may need to put in place around that. Also HMRC’s phone lines get even busier around tax return filing season, so if you have any questions for the revenue, then its best to contact them sooner rather than later!

Filing early is an ever growing trend, with HMRC seeing more than 63,000 people filing their tax 20/21 return on the 6th April 2021, and 934,501 by the 17th May 2021.

Tax isn’t always bad news either – for those of you lucky enough to receive a tax refund for the year, the earlier you file, then the earlier you will get your refund!

Get a good filing system in place ready for MTD

We couldn’t really talk about the new tax year without mentioning MTD, could we?!

Although this isn’t strictly an MTD specific point – a good filing system and method will ensure that when you are putting together your tax return, the process should be relatively pain free.

And with Making Tax Digital for Income Tax edging ever closer, it really is a good time to consider using a software to keep your records – by starting at the beginning of the tax year, you will have a full years records under your belt by the time it comes to your next tax return – and once MTD becomes a legal requirement, you will already be a digital record keeping pro!

If you’re still looking for the right MTD software for you, why dont you check out our MTD ITSA ready package here

Update yourself on new tax rates and rules

Tax rates and brackets change on a near annual basis, so keeping yourself up to date for the current tax year, as well as the year you’re filing for can help reduce any surprises when calculating your tax liability.

The recent spring statement included an increase in the threshold before you are charged national insurance, BUT there will also be an additional 1.25% “Social Care Tax” to keep an eye out for.

Really what we’re trying to get across is that being organised is key – that and having a good software partner to support you through everything! At APARI we aim to support all of our landlord users as much as possible through the transition from Self Assessment to Making Tax Digital for Income Tax. Want to keep up to date with all things Landlords & Tax? Check out our Community here.