At this time of year many small businesses or self-employed individuals, who work from home, are struggling with the headache of completing year-end financial returns.

It is vital to stay on top of your finances to avoid the stress of any nasty surprises and to maximise your profits. Here are our top tips:

1. Try to keep your finances in order throughout the year. If possible keep monthly accounts and ensure you understand your financial position. This will help you to put aside money for upcoming tax bills and take advantage of tax planning opportunities.

2. Consider your pension payments. If you assess that your personal taxable income for the year will take you over a higher rate threshold, look at increasing your pension contributions to reduce or eliminate this liability.

3. Record all expenses for the financial year for the time they are incurred. Accounting rules state that this should be the case. Expenses claimed after the financial year end will be subject to tax relief but you will have to wait for a year to receive this relief.

4. Manage the timing of dividends. These are only taxed when paid to you personally so it is up to you, as director of your company, to control these payments so as to manage your personal tax liability. Delaying taking a profit from your company into the next year may have tax benefits.