For any Self Employed people with lower profits this year than last year.....

I spend a fair amount of time out of working hours checking out various online forums and networking sites.

There was a really useful tip on there the other day that I wanted to share with you.

Go and speak to your accountant and get your books and self assessment sorted early. Particularly if you are an end of the year type person.

If you are self employed then the tax you paid in January included a payment on account for the 2008-9 tax year, based on the profits for last year. The second payment on account is due 31-7-09.

Now, if your profits are lower 2008-9 than 2007-8 then you're payments on account are probably overestimated.

So, go get your accounts sorted early. Get your tax return in early. Leave the overpayment of your January payment on account, don't ask for a refund. And pay a reduced payment on account in July.

If you are in this situation, there is absolutely no benefit in waiting till the end of the year to sort your accounts and tax returns.

Same thing applies to anyone who although their trading profits may be steady, who has invested in capital expenditure that qualifies for the Annual Investment Allowance.

Also, your accountant will love you!!

As I said earlier, credit for this idea goes to a colleague on one of the networking forums.