Brokers - talk to me about your self assessment experiences

For many people, the thought of filling out a Self Assessment tax return can be daunting, leading to procrastination and a sense of dread. But I'm celebrating an early morning wake-up call on the 6th of April that helped me start the new tax year on the right foot. I used to be complacent about my tax return, leaving it until the last minute and feeling stressed about the process but this year, I decided to take a different approach and tackled it before 7am on the first day of the new tax year. By being proactive and getting the task done early, I was able to avoid the stress and worry that often come with tax season. Knowing in advance the tax due has made me focused, clear and without worry of the manageable liabilities ahead. I have always done my return myself as it's fairly simple, although I have help on hand from those much better than me if necessary.

I have always submitted my tax return as soon as I possibly can. I have never understood the mentality of submitting them the following January, I would prefer to know my exact bill as early as possible to prepare for it. I use an accountant who points me in the right direction and provides me with the estimated bill from May.

Personally, I'm employed, but I thought as a commentary around this query it would be good to point out that this is a fantastic time for the self-employed. Often mortgage lenders base self-employed income on the average of the past two year's figures (although there are many variances on this) so we will often see clients rushing their latest year's tax returns through as if they've had a good year as their latest it can have a significant positive impact on their mortgage borrowing power / affordability. With self-employed figures often being far in the past, this is a good time of year for the self-employed mortgage-wise.

Tax. One of the many joys of self-employment. My business is run through a Limited Company so my personal tax returns aren't completed until the year-end of the Limited Company is done. I do push my accountant to get them done as soon after that as possible, when I was a sole trader I would always get my tax return done as soon as I could after the end of the tax year too, so I can get as much prior notice as to the amount I need to pay by 31st January the following year; no one likes a surprise tax bill bigger than they expected (or have saved for). I would always recommend seeking out the services of a good accountant, not only can they ensure that things are done correctly, but they can also advise on any potential areas of savings or allowances you may not be aware of.

Self-assessments are always a focus when clients are looking to obtain a mortgage or buy a new house. Are brokers we always encourage our clients to obtain their lastest Tax returns as soon as possible. This allows a clear and accurate position for mortgage product research.

With several lenders allowing 1-year self-assessment and possible accountancy reference to support mortgage applications, the options available are better than clients believe and the market gives lenders credit for.

However, last-minute actions to clients' objectives are not uncommon when looking at lending options, usually due to time scales and advice from accountants that 'it is not due yet' can create challenges for lenders and underwriters reviewing lending criteria.

We have a list of recommended partners that can help and assist clients, however, this is independent to our advice as tax and income advice is vitally important for tax planning and business structure.

As a limited company, it is necessary for me to obtain two sets of accounts: one for the business and another for personal use. Historically, my accountant has deferred completing both accounts until the final month of the year. This has not been problematic for me, as I did not require financial documentation for any purpose. However, when I sought to apply for a mortgage and needed the latest figures from the previous year, my accountant promptly completed the required documentation.

In my role as a broker, I find it helpful to have a comprehensive breakdown of my company's expenditures, categorised by area. This allows me to identify areas where costs can be reduced or budgeted for in the future. I have even asked my accountant to establish new criteria on Dext, such as Marketing, Advertising, and Coaching, to streamline this process, and know what is being spent where.