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We've scoured the web to get you the most up-to-date advice which includes the most useful tools on offer from the officials themselves.

Effective tax planning is essential if you are to minimise your tax bills. Simple tax planning can significantly reduce your tax liabilities.

The self-assessment tax return is an unavoidable burden if you are liable for self-employed tax or have complicated income tax affairs.

Corporation tax is charged on a company's profits. If you trade as a limited company, ensure that paying this tax is as painless as possible.

National Insurance Contributions (NICs) are payable whether you are self-employed or employed by your own company, although different rates apply.

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

VAT

Effective VAT planning aims to ensure that VAT is relatively painless, and that you are reclaiming as much as possible of the VAT you pay.

Capital gains are made when you sell something for more money than you paid for it. As a result, you can be subject to tax. Take professional advice.

Business property taxes apply to businesses with commercial premises.There are two commercial property taxes: business rates and stamp duty land tax.

If you have tax problems or face a tax investigation, it pays to seek professional advice and you must act rather than just hoping for the best.

Millions yet to file their January tax return

5 January 2021

Around 5.4 million tax payers have less than a month to complete their annual tax return, ahead of the self assessment deadline on 31 January.

HMRC says it expects 12.1 million tax returns to be filed this year. Around 55% of tax payers have already filed their returns, with more than 6.2 million choosing to submit online.

Those who have yet to file a self assessment return are being urged to act now; HMRC has said that it may be a more time-consuming process than anticipated.

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In fact, accountancy bodies have warned that both tax payers and accountants may struggle to meet this month's deadline because of the pandemic and many are hoping to see some leniency from HMRC when it comes to late filing penalties.

The Institute of Chartered Accountants in England And Wales (ICAEW) said: "Many member firms are under enormous resource pressure due to assisting clients with claims for COVID-19-related financial support and providing other pandemic-related business advice. While working every hour possible, they will still struggle to meet the filing deadline for all their clients."

Phil Hall, head of public affairs at the Association of Accounting Technicians (AAT), said: "Almost one million self-assessment tax returns, of the 11 million due, were filed late in the last financial year. As a result of the coronavirus pandemic, the situation will probably be much worse this year and late filings will rise dramatically."

Karl Khan, HMRC's interim director general for customer services, said:

"In what was a very difficult year for many, we are grateful to the 55% of our customers who have already submitted their returns.

"HMRC is ready to offer support to those who are yet to file their returns or are worried about paying their tax bill, but they must act now so we can help before the deadline."

Once customers have completed their tax return, and know how much tax is owed, HMRC says they can set up their own payment plan to help spread the cost of their tax liabilities, up to the value of £30,000. They can use the online Time to Pay facility to set up monthly direct debits. However, interest will be applied to any outstanding balance from 1 February 2021.

As ever, tax payers must be aware that if someone calls, emails or texts claiming to be from HMRC - saying they can claim financial help, are due a refund or owe tax - it might be a scam.

Written by Rachel Miller.

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