The Modern Self‑Assessment: Making Tax Season Less Stressful
Basetax is the intelligent tax platform that automates your finances. This intelligent platform handles bookkeeping, forecasts liabilities, and files with HMRC, providing an end-to-end digital solution for individuals, sole traders, and small businesses.
Tax season, the time of year when the phrase “financial stress” takes on a whole new meaning. For small business owners and the self‑employed in the UK, the statistics reveal it’s no mere annoyance. On average, a small firm spends about £4,500 and 44 hours each year on tax compliance alone. Collectively, that equates to around £25 billion annually across the UK’s small business sector.
What’s more, the latest figures from HM Revenue & Customs (HMRC) estimate the UK “tax gap” – the difference between what should be paid and what is actually collected – at 5.3% of total theoretical tax liabilities, or about £46.8 billion in 2023–24. Crucially for many small businesses, this sector contributes the largest share of that gap: around 60% of the overall tax gap comes from them.
For small business owners who are already juggling clients, projects, overheads, and deadlines, self‑assessment can feel like the final straw. It’s the time when they painstakingly gather receipts, reconcile accounts, fill in forms, double‑check figures, and hope nothing is overlooked. But it doesn’t always have to be that way. With the right tools and mindset, tax season can be far less stressful than it has traditionally been.
The traditional self-assessment
For most people, self‑assessment is one of those tasks dreaded all year, only to be realised too late. The traditional method of calculating income, deducting allowable expenses, and filing tax returns can be daunting, especially when faced with complex forms and unfamiliar terminology.
While the system itself is quite straightforward – reporting earnings, deducting expenses, and paying due taxes – the sheer volume of paperwork, coupled with the anxiety of making mistakes, can turn any day into a stressful nightmare.
Tax season often coincides with other financial responsibilities, such as paying for utilities, preparing end-of-year reports, or getting organised for the new financial year. This leaves little room for focusing on one of the most important things—ensuring the tax return is filed correctly and on time.
However, there’s no need to go it alone. Self‑assessment doesn’t have to be a complex, time-consuming process. Things are changing, and technology is playing a significant role in making this process much easier.
How technology is making tax season easier
With the rise of digital technology and artificial intelligence (AI), the way self‑assessment is approached is changing rapidly. Gone are the days of sifting through piles of receipts and manually filling out forms. Now, everything can be done from the comfort of one’s own home, and even on a mobile phone.
Increasingly, business owners are turning to accounting software that simplifies the entire process. These platforms allow users to track their income and expenses, automatically calculate taxes, and file returns – all with just a few clicks. Even better, this software utilises real‑time data, so users can keep track of their tax position throughout the year, not just at tax time.
But what about those of us who need a little more than just software? What if you want a helping hand from an accountant, but without the usual hefty fees? This is where Basetax.ai comes in.
Basetax.ai: The AI-driven accounting platform for SMEs
Basetax.ai is an AI-driven platform designed specifically for small and medium-sized enterprises (SMEs). Founded on the belief that every business, no matter how small, should have access to world-class accounting, Basetax.ai is changing the way businesses handle their taxes.
What sets Basetax.ai apart? It combines cutting-edge AI technology with a human touch to create an intuitive, easy-to-use platform that automates bookkeeping and tax filing. The result? A stress-free tax season for SMEs, with the added benefit of staying compliant with the latest tax regulations like Making Tax Digital (MTD).
Here’s what Basetax.ai offers:
- AI-powered bookkeeping: Using advanced AI, Basetax.ai helps SMEs automate their bookkeeping processes. It automatically categorises expenses, tracks income, and even generates profit and loss statements in real-time. No more manually sorting through receipts or inputting transactions into spreadsheets!
- Tax filing made easy: Filing self-assessment returns becomes a breeze with Basetax.ai. The platform uses information it collects from a business’s activities to automatically generate the tax return, ensuring everything is accurate and compliant. It also integrates directly with HMRC’s MTD initiative, allowing businesses to file returns seamlessly online.
- HumanAI Assistant: With Basetax.ai, businesses are now equipped with a groundbreaking tool that combines the efficiency of AI with the personal touch of human assistance. HumanAI Assistant is powered by AI.DNA, designed to simplify your financial management and offer real-time, context-based support.
- Ease of use: Business owners don’t need to be tax experts to use Basetax.ai. The platform is designed to be user-friendly, with intuitive interfaces and helpful prompts that guide users through the entire process. Whether it’s tracking expenses, generating reports, or filing the return, Basetax.ai takes the guesswork out of tax season.
- Accuracy & compliance: With Basetax.ai, businesses can rest easy knowing their taxes are being handled correctly. The platform automatically updates with any changes to tax laws, ensuring compliance with the latest regulations, including the MTD mandate.
Why self-assessment is no longer a “nightmare”
You might be wondering, “But isn’t self-assessment still a stressful process, even with all this technology?” The truth is, technology is designed to take the pressure off, but it’s important to stay proactive and get into good financial habits throughout the year. The key to a stress-free tax season is planning ahead and staying organised.
Using platforms like Basetax.ai helps businesses stay on top of their finances throughout the year, meaning there are no last-minute scrambling or panic attacks when tax season rolls around. In fact, Basetax.ai’s real-time data tracking ensures that your finances are always up to date, so you’ll never be caught off guard by unexpected taxes.
Basetax.ai is already serving around 500 clients and has earned recognition from HMRC for self-assessment filing. This means you can trust that it’s a reliable solution that meets all of the necessary compliance standards.
Key benefits of using AI in self-assessment:
- Real-time tax calculations: With AI-powered platforms, business owners can track their tax liabilities in real-time, meaning there are no surprises when it’s time to file. This allows businesses to adjust their operations and expenses to better align with their tax obligations.
- Automation saves time: AI takes care of the repetitive tasks, such as categorising transactions and generating reports, leaving more time for focusing on what matters most, growing the business.
- Reduced risk of errors: By automating key parts of the process, AI helps reduce the chances of making costly mistakes on tax returns. Inaccurate filings can lead to penalties, but with AI, businesses are much less likely to fall into that trap.
- Seamless filing: Filing through platforms like Basetax.ai means businesses can file directly with HMRC, ensuring compliance with MTD. No more worrying about meeting deadlines or dealing with complicated paper forms.
- Cost-effective for SMEs: Small businesses often can’t afford to hire a full-time accountant, but with AI-driven tools like Basetax.ai, they can get the expertise they need at a fraction of the cost.
Final thoughts
Self-assessment doesn’t have to be a stressful, overwhelming experience. With technology like Basetax.ai, businesses can now automate much of the process while keeping human accountants in the loop for that extra peace of mind. By taking advantage of AI-driven platforms, you can make tax season a whole lot easier and more manageable.
So, the next time tax season approaches, don’t wait until the last minute. Embrace the future of self-assessment and let technology work its magic. With Basetax.ai by your side, you can rest easy knowing that your taxes are in safe hands.
Remember, stress-free tax seasons are just around the corner—if you let the right tools do the heavy lifting for you!
