Filing a tax return can be time-consuming, which is why a lot of people put it off until the last minute, when things aren’t always looking up. But there are ways to save time and money when dealing with tax.
Keep a record of everything and anything that is taxable, so your tax return will be accurate. Make sure you have a list of all legitimate expenses, so you can make full claims on them.
Avoid penalties by filing your tax return on time, because the late fees you will have to pay could take a good percentage of your tax return. Now that’s money thrown down the drain.
Self Assessment Tax Returns
If you are self-employed, make a list of all legitimate taxable expenses, including bank interest from all your accounts, except ISA’s. Make sure your list is accurate, because any discrepancy between your tax return and the interest details your bank provides to HMRC will result to an enquiry.
Make charitable donations. Did you know that higher rate taxpayers can enjoy up to 30% gross tax relief for the money they donated to a registered charity? You can enjoy the same benefit by making charitable donations. Be a little more generous, and you get a substantial tax rebate. Make sure you ask for a gift aid declaration for every time you donate as this will serve as proof of your generosity.
Most importantly, take advantage of tax credits. If you know you overpaid tax, make sure to file a claim to get back any amount that is rightfully yours.
Think you may be due a tax refund? Apply here to get your tax back.