Listed are common UK tax return mistakes and the solution to avoiding them. After all, a small mistake filling out that HMRC document can result in you incurring huge losses, so let’s get cracking and avoid those expensive mistakes.
What are the Common UK Tax Return Mistakes?
Individuals who put in self-assessment tax returns in UK thought they had made a mistake, according to the survey conducted by a consumer protection group. In fact, around 19% were not sure if they filled out the forms correctly, thus resulting in high financial losses, which is a staggering rate when you consider that amongst the 11 million people filing a tax return in the UK, almost 2 million, believe, they made an error. One of the main reasons for errors was attributed to most individuals doing a self-assessment without fully understanding the forms requirements, including errors when filling the income form. Here are common areas mistakes occur;
Savings which applies to rates and allowances as well
Filling the Form is a Baffling Task, We Understand That!
Filling out a lengthy form to most individuals is a mundane task, plus a complex tax document can be even more confusing. Investment and property tax forms come up trumps amongst most individuals as being the most baffling, hence the number of times these forms have been, shall we say ‘tampered; with over the years is extensive. Forgetting to fill your tax return or submit it on time will cause you to incur heavy penalties from HMRC,
How Do you Avoid Making Mistakes on your Tax Return Files
- Get it done on time! Leaving your forms to be filled at the last moment will generally result in mistakes being made and cause you to be fined in the process
- Before you start, gather all necessary documents, have last year’s tax return on hand for comparison and double check your self-assessment tax return before submission
- If your savings are eligible to be taxed, you must pay the stipulated interest. Those on the high- savings tax scale need to pay 40% and if the basic 20% has already been deducted the balance 20% needs to be paid
- People on the ‘tax free individual allowance’ are eligible for a tax refund on tax deducted on your saving interests
A number of registered pension schemes are eligible for a tax rebate, not the life insurance premiums though
All in all folks, you need to get the services of a professional and skilled tax returns consultant in the UK, the benefits will be well worth the effort.