Most people want to think about tax as little as possible. However, as the new tax year begins, be brave and make some New Year’s Resolutions. Here are some suggestions.

1. Filing your tax return

The deadline for self assessment income tax returns has changed. Previously you had until 31 January following the end of the tax year, to submit that year’s tax return. Now, for the year ended 5 April 2008 (i.e. the one that has just ended), if you want to file a paper return, you have to do this by 31 October 2008. So that’s just about six months from the time of writing. Not long really, so start preparing.

If you are willing to file your return online, that you still have until 31 January 2009.

2. Plan so that you are able to pay your tax on time

To avoid interest and also possible surcharges, you will need to pay your tax on time. As we cover in our article “Paying your tax bill”, you need to plan ahead if you are going to avoid a nasty shock on 31 July, and especially on 31 January. With possible credit harder to come by to make up any shortfalls, you need to be thinking about this now.

3. Talk to your accountant

If you have always filed your tax return on the last minute, there has probably been little scope for tax planning. Speak to your accountant now (when theoretically they have more time), to see whether there are any ways that you could be saving tax, or planning for your future.

4. Keep good records

One of the reasons why accounting and tax become such chores for a small business, is the fact that you have to go and find all your receipts and details of income etc, months and even years after the event. Now is the time to stop procrastinating and organise a filing system as you go along. You may even require your own accounting software.

In any case, ask your accountant for a checklist of what he/she needs to prepare your accounts and tax return every year, and make sure you collect the information as you generate income, and incur expenses. This may even save you money, if it saves your accountant time. You are also less likely to forget about valid business expenses that you have incurred, which can reduce your tax bill.

New Year’s Resolutions are rarely painless, but you are going to have to address these points anyway, why not do it now?

As with all our information in The Business Lounge, this is not comprehensive tax advice, and may not apply to your specific circumstances; to discuss how these issues affect you, contact your accountant.