"While everyone knows the January 31 deadline, many who are new to freelancing often get caught out by payment-on-account deadlines, which asks you to pay your taxes ahead of your income," said Matthew Knight, chief freelance officer at Freelancing.
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Knight noted that getting into a routine of tracking accounts monthly or quarterly can simplify administrative tasks before HMRC sends reminders.
"Getting into the habit of doing your accounts monthly or quarterly helps you keep on top of the admin, rather than waiting for HMRC to remind you.
This is where Making Tax Digital could actually help small businesses, ensuring they're on top of their taxes," he said.
Financial advisers point out that early preparation allows business owners to evaluate their actual financial performance accurately.
"It's good practice to get on top of this as early as possible.
That way, you can ensure the payments on account remain appropriate for the level of income you've actually earned," said Ross Lacey, director and Independent Financial Adviser at Fairview Financial Management.
Lacey stressed that early accounting prevents small businesses from operating with outdated financial awareness.
"It also helps with any changes you may want to make to your business in the current tax year, using the information on how much profit, or not, was generated in the previous tax year.
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Far too many people are almost a year behind in knowing how their business is really doing.
