With the self-assessment deadline looming large, it's important to take a considered approach to dealing with your taxes. Here's a last-minute guide to getting your affairs in order.

1. Losing track in the switch to digital

Whether people like it or not technology continues to move further into every level of our business and personal lives. However, getting the jump on new tools and processes can prevent aggravation later on while also providing the opportunity to take advantage of time-saving tech.

2. Leaving Tax Returns too late (!)

It might sound obvious but the risks of leaving tax returns until the deadline date are more punishing than ever. In fact in a few years time this will no longer be an option at all for some businesses as taxes slowly move over to digital. Taxes will need to be completed on an ongoing basis as new HMRC plans roll out between now and 2021, so you may wish to work with someone like Gm professional accountants to ensure that your taxes are in safe hands.

3. Mortgages and tax

Despite it becoming more and more expensive to own a property many still aspire to own a home. But what some people may not know is that remaining income after tax can affect an individual’s ability to acquire a mortgage.

Lenders look at outgoings to determine how much they are willing to provide applicants with. Therefore, those who spend more will get less offered to them by banks. The best thing to do is make sure returns are accurate and that spending is under control.

Your business outgoings can impact mortgage applications

4. Errors in proofing

Errors can be costly when it comes to tax returns and the best way to avoid making mistakes that cause financial implications is to stay on top of your accounts in the first place. This means any outgoings, profits, expense receipts, bank statements should be held onto. Luckily the digital age makes this easier than ever with most banks offering customers the ability to go paperless.

5. Allowances

It would be a big mistake to misunderstand your tax allowances. Knowing what you are entitled to saves hassle from HMRC and potentially stops over-paying. When it comes to Tax that is something nobody wants to do.

6. Not knowing your lingo

Do you know what a Dependent is? What about Capital Gains, Contribution Plans, Exemptions or Tax Credits? In the UK many don’t receive any formal education regarding tax and accounting at school meaning one of the biggest issues is simply not understanding what is meant by basic accounting lingo. Don’t let yourself get caught out, spend a few minutes brushing up on terminology.

7. Not appointing a professional where needed

With the number of penalties made against taxpayers who had made ‘deliberate’ mistakes rising from 9% to 16% it is important to know when you may need extra assistance in understanding HMRC’s assessment forms.

Mistakes can cause an individual or business to pay anywhere between 20-100% more tax. However, at the moment only 25% of small businesses use accounting software, don’t be afraid to ask a professional.

Lee Murphy is managing director of The Accountancy Partnership and Pandle cloud accounting software.