Are You Filing Your Tax Return Correctly?
Getting a tax refund is extra money that you can spend any way you want, but if you are not smart about filing a tax return, it can become money down the drain. So make sure you know which time of the year you need to complete a paper tax return.
The deadline for paper returns is 31 October. But if you miss that date then you must complete an online tax return before the 31 January deadline.
You also need to determine which taxable income is not covered by PAYE if there have been changes in your employment within the tax year.
Knowing all these beforehand will save you from tax-related problems, including paying hefty fines for late filing.
Fines start at £100 with additional £10 per day for a 90-day maximum. If you file your tax return after 3 months, you will have to pay a fine of £1000. The longer you wait before you file your tax return the higher the late charges will be, resulting in your tax refund amounting to zilch.
What You Need
So you can zoom past the filing process, you should get your paperwork together, especially details of all you learned over the tax year, i.e. 6 April 2013 to 5 April 2014.
- You must have your P60 or P11D, if you are employed
- Accounts and records of all your expenses, if you are self-employed
- Records of any interest earned, if you have savings or investments
When filing an online tax return, it is vital that you understand the tax return forms to avoid any mistakes that will cause delays in your filing, which can result in penalties. If needed, don’t hesitate to seek professional advice from a tax expert. Better to be safe than sorry, right? You should not forget to click the Submit button as well.
Most importantly, do not forget to pay your taxes. There are fines for late payments as well, but are usually lower than fines for late filing.
If you need any questions answered or would like to discuss any other tax issues then get in contact with our Tax Agents