The 31st of January is the deadline for submission of tax returns for those who chose to file online.
Filing taxes is surely not the ideal way to be spending the holidays, but according to HM Revenue and Customs more than 20,000 submitted their returns on New Year’s Eve. If you want to avoid spoiling Christmas, here are some tips to get your tax return in before the deadline:
Organize Your Records Accordingly
The amount of income tax you pay in a tax year depends on whether or not your taxable income is more than your personal allowance as well as how much of the amount falls into the specified tax bands. For example, the 2015/2016 tax allowance was £10,600 so if you earned more than that, you have to pay tax. The basic rate limit for 2015-2016 was £31,785.
However, beginning the2016/2017 tax year, new rates have set in. Personal allowance was increased to £11,000. The basic rate limit (20%) was also bumped up to £32,000 while the higher rate limit (40%) was increased to £43,000.
Other than knowing the information above, keeping records is also important. For one, you can keep receipts and other needed documents in one folder. Or, you can use an electronic filing system to keep track.
Do Not Do Everything in One Go
You’ll overwhelm yourself if you do everything at once. Set a schedule that allows you to complete your tax returns over a number of days. Even better, set a limit to the amount of time you have to work on your returns. Splitting the submission process into manageable sections is realistic and doesn’t stress you out. Doing this also helps you get everything done before Christmas. Even better, you can check and re-check for mistakes and correct them before final submission.
A lot of people have used Christmas Day as well as Boxing Day and so forth to complete their tax return submissions. Instead of doing this, schedule yours earlier and leave room to address any errors. The holidays are the time to be merry and be with family, so take a little time after work or before you head out to work to work on your taxes.
Think you’re owed a tax refund? Apply here to get your tax back