How to Make Tax Time Less Stressful: Save Throughout the Year
For swim schools, franchises and other small businesses run by sole traders, the self-assessment tax return deadline often looms like a dark cloud. It doesn’t have to be this way. With a bit of forward planning and regular financial habits, you can transform the way you feel about your tax return.
Here’s how you can make tax time less stressful:
1. Understand Your Tax Obligations
At Pink Lily Accounting Solutions, we believe that knowing exactly what you owe is crucial to planning ahead for the deadline. You’ll need to account for:
Income tax
National Insurance contributions
VAT (if you're above the threshold)
We help our clients plan ahead by estimating how much they should set aside each month. And when you provide us with your information early, we’ll get your tax return filed promptly—so you know exactly how much to pay and when.
2. Set Up a Dedicated Tax Savings Account
This is one of the easiest ways to prepare for tax payments. Open a separate account just for taxes, and every time you get paid, transfer a percentage of your income into it.
Some banks even offer savings spaces within accounts, which are perfect for setting aside funds for tax, VAT, and emergencies.
💡 Tip: Aim to save 20-30% of your income for taxes. When the bill arrives, you’ll be ready.
3. Track Income and Expenses Regularly
Staying on top of your finances year-round means no nasty surprises in January. Using accounting software to log your income and expenses monthly gives you a real-time view of your business’s financial health.
We recommend reviewing your bookkeeping at least monthly. The more consistent you are, the more accurate your numbers will be—and the less work you’ll have to do come tax time.
4. Produce Quarterly Reports
Quarterly financial reviews are a game-changer for small business owners. They give you insights into your income, expenses, and tax savings, allowing you to adjust if needed.
At Pink Lily Accounting Solutions, we offer Management Reports and Cash Flow Forecasts to help you spot trends and prepare for challenges before they arise. It’s all about making informed decisions to manage and grow your business.
5. Automate Where Possible
Automation makes saving for taxes effortless:
Set up automatic transfers to your tax savings account.
Schedule reminders for tax deadlines.
Add recurring calendar tasks for financial reviews.
A little automation now saves a lot of stress later.
6. Work with a Bookkeeper or Accountant
Feeling overwhelmed by tax savings and financial records? Partnering with a bookkeeper (like us!) ensures you stay organised, compliant, and confident throughout the year. We’ll handle the numbers so you can focus on running your business.
7. Use Tax Time as a Business Health Check
Tax time isn’t just about ticking boxes. It’s a chance to reflect on your business:
Are you hitting income targets?
Can you reduce expenses?
Are you saving enough for the future?
Taking control of your finances year-round means you’ll approach tax season with confidence—not dread.
January Doesn’t Have to Be Stressful
By saving consistently throughout the year, you’ll avoid last-minute scrambles and gain peace of mind. Imagine knowing you’re financially prepared, no matter what.
Ready to take the stress out of tax time? Get in touch today to see how we can help.
E-mail us now on karen@pinklilyaccounting.co.uk to see how you can work with us.
Building a successful future, together.