Self-assessment can be very time to consume and often really confusing for busy individuals. You might find your time is better spent elsewhere and taxpayers are penalized by HMRC each year because deadlines are missed, incorrect returns are delivered and appropriate records are not retained or presented.
Here are some tips to help
1. Get an online account – Create an online account, it can take up to seven working days to receive your activation code so don’t leave it too late.
2. Gather your paperwork – Before you make an attempt at filling out your form make sure you’ve got all the paperwork that you need to hand. You’ll need a P60 from your employer so you can show your income and what tax you’ve paid on it. If you’ve left your job within the tax year you will need a P45. You’ll also need details on investments, dividends, and any other income.
3. Don’t phone the HMRC – Phoning the HMRC can be very time consuming and you may not get the answers you are looking for straight away. Avoid stress by looking for answers online or contacting an accountant.
4. Use an accountant – While there are loads of articles and websites on the web that can help make filling out your tax return easier, the only real way to avoid any stress is by not doing any forms at all. However, this will result in a big fine so your only option would be to use an accountant. They can deal with your paperwork and it will let you sit back and relax knowing your taxes are in the right hand.
It’s important to be aware of the penalties that can occur so you can avoid them.
You can be fined £100 immediately after the due date for filing. You used to not have to pay the £100 if you have paid £100 in tax, however, this cap has been removed.
If you’re over 3 months late you can be charged £10 daily up to a maximum of £900. If you are 6 months late an additional £300 will be charged or 5% of the tax due if that’s higher. If you’re over 12 months late you will be fined another £300 or 5% of the tax if that’s higher. In very serious cases there is a penalty of up to 100% of the tax due.
HMRC can enquire into any return by giving a written notice. This will usually be done within 12 months of the filing date. HMRC cannot ask any questions about any entry on a tax return unless they start an inquiry. The main point of an inquiry is to identify any errors which would make you pay less tax however it’s important to note that if an inquiry is launched that doesn’t mean a return is incorrect.
How we can help
Here at Tax Kings, our goal is to spare all these problems and free up your time offering a comprehensive individual self-assessment service.
Please get in touch with our dedicated team on 01413331852 or feel free to send an email over to email@example.com