Filing tax returns can be tricky for many. Despite being cautious, filers tend to forget something and get in bad books of HMRC. Let’s review quickly ten tips to avoid just that.
Now and not Later:
Why wait when you can open HMRC tax return online account now. Why leave it till mid of January? This can be a complex procedure because HMRC seems to be constantly updating security requirements. For your information you need to download HMRC app on your mobile or Tablet now to access your online account.
Checklist:
Bank statements, self employment records, expense receipts, income statements? Create a list of all documents that will be required. Verify what you already have and highlight those that are left still. This is another reason to start the process sooner than later. This will buy you time in case you realise you are falling short of necessary documentations.
Check again
Make sure you read the requirements very clearly. Do not confuse between gross and net figures. For every item like dividends and bank interests, read weather HMRC wants you to fill the gross i.e. inclusive of Tax amount or net i.e. exclusive of Tax amount. Entering the wrong amount can clearly lead you into trouble.
Any deductions?
Did you receive any Christmas gift this year? Or did you do the good and contributed to charity in spirit of being a good human being. Did your friend give you an annual subscription to the historical museum? Remember to claim deductions that you are entitled to. Review your finances clearly to see if you have a valid tax deduction available.
Calculator please!
Good at mental maths? No please! Don’t be over confident. Check numbers thoroughly. See if you have not missed a zero or mixed up number orders in figures ( 31145 and 31154)? Remember once you press submit, you throw the ball in HMRC court. And the dear HMRC can be really nasty if it finds you in mistake.
PAYE CODE:
If you are an employed individual, make sure you have all your PAYE coding notices. Your employer will provide you these. And also verify if you have any underpaid or overpaid tax that is included in your PAYE CODE. These adjustments must be recorded in your annual returns to ascertain correct tax amount.
Get an Expert Help
Alas, there is no compulsion on HMRC to be logical in tax rules. The tax man also have immense powers to decide change of rules or penalties. True, common man cannot keep a track of it. So if you are doubtful even by an iota, get an expert accountant or chartered tax advisor to sort out your taxes.
Why not pay now?
Paying the taxman the sooner is the better option. Don’t let the ball role over to the tax man’s court. If you leave it to 31st January; the tax return day, HMRC may take upon itself to decide your bill and any debt recovery action it deems good. Don’t have money? Still file the returns timely and then contact HMRC for arranging extra time for payment.
Personal Details
You will be surprised to know how many errors people make in this area. Make sure you include personal details and details of all applicable pension schemes including the ones you inherit on someone else’s death. Check spellings, dates and off course figures very thoroughly. You never know the trouble Sara and Sarah can make.
Don’t add what’s not needed!
Keep things simple and add what is required. Exclude tax free income sources like lottery winnings, gambling money won, occasional eBay sales money or money held in Isas/Premium Bonds. Get expert help to determine which sources are tax free and which are not to avoid any errors.
If you need any help to fill in tax return, you can contact Certax Fitzrovia Ltd. We offer reliable tax consultancy and HMRC self assessment services and deal with book keeping and VAT also. Call: 020 8004 4608
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