HMRC (Her Majesty’s Revenue and Customs) collects Income Tax automatically from wages, pensions and savings. However, people and businesses with other income must report it on a tax return via the Self-Assessment system. If you need to send one, you will receive a paper or online tax return which you need to fill it in and return after the end of the tax year. It is crucial that you keep all records u birder to return the form, including expenses, as you may be asked to produce these if your tax return is investigated.
Completing this process can be very time consuming and confusing. If you miss the deadline date for completing your tax return, file incorrect returns or retain information or records you may incur a penalty by HMRC. As expert Self-Assessment tax returns accountants, Tax Kings can spare all these problems and free up your time offering a comprehensive individual self-assessment service.
Here are our tips for preparing and managing your Self-Assessment tax returns to keep everything correct in line with HMRC procedures.
- Create an online account – Create an online account with the HMRC. Receiving your activation code can take up to seven working days, so don’t leave it too late.
- 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. It may be helpful to file these by date for quick reference.
- Don’t call 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 a Self-Assessment tax returns accountant.
- Use an accountant – While there are many 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 Self-Assessment tax return accountant to avoid unnecessary stress and relax knowing your taxes are in the right hand.
Penalties – know the facts
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. Until recently you did not have to pay this fine if you have paid £100 in tax, however, this cap has since been removed. If you are 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 – whichever is the higher amount. 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.
Enquiries by HMRC
HMRC can inquire 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.
Tax Kings can help
Contact us to help assist you every step of the way in preparing, recording and completing your annual return, or simply just giving advice. Don’t risk heavy financial penalties from HMRC – choose Tax Kings, Self-Assessment tax returns accountants.
Please get in touch with our dedicated team on 0141 333 1852 or feel free to send an email over to firstname.lastname@example.org