Don’t put off your tax return

Laura Whateley, author of Money: A User’s Guide

Last year, 700,000 people only submitted their tax return on deadline day (31 January), with a reckless 26,562 filing in the 59 minutes before the midnight cut-off!

With the pandemic, the selfemployed are even more likely to procrastinate this year, finds research by Taxscouts, which simplifies tax returns, with social media, Netflix and tea drinking popular distractions.

Dr Tim Phychl, who has been studying procrastination for 25 years, offers some reassurance. ‘Procrastination is a difficulty with managing our emotions. Our emotional brain hijacks our common sense, and our focus narrows to feeling good now and avoiding doing the task.’ His tips? ‘Starting is the hardest bit, so keep the initial action small. Even a little progress primes the pump of motivation and action will follow.’ So don’t focus on how far away you are from filing your return, start by compiling your expense receipts.

If it’s Covid that’s making it hard to self-assess, HMRC has confirmed you can file late without penalty (usually a £100 fine) and is developing a ‘Covid excuse’ form. If you owe less than £30,000 you can also apply for ‘Time to Pay’ to spread payments until January 2022, although you will incur interest.

Be sure to claim expenses, such as equipment bought to help you work from home and stationery, books and subscriptions that contribute to your work. Sadly, unless you’re a TV producer, Netlflix probably doesn’t count.