As we approach the year-end, the Self-Assessment Tax Return deadline (31 January 2023) is creeping up on us, and it means time to get prepared. In the process, many of our readers believe it can be easy and quick until they are swamped in receipts and spreadsheets and have nobody to call, then one week before the deadline they rush to a pricey accountant. We’ll always advise using an accountant to submit your Self-Assessment Tax Return as they will ensure none of the following mistakes happens. Here are easy mistakes to avoid when submitting your self-assessment.
What do people submitting their tax returns often get wrong?
- Paying more tax than necessary/inaccurate returns
- Missing your pension contributions
- Not claiming allowable expenses or claiming expenses that you are not allowed to claim
- Not claiming capital allowances
- Incorrectly adjusting your payments on account
- Being late / not giving yourself enough time to prepare
What other self assessment mistakes could happen?
You could get fined for not submitting on time, so if you miss the deadline and are late, even for one day, there is an automatic late filing penalty of £100. Late by up to three months means £10 extra for each day late and is capped at 90 days. Being late by up to six months means an extra £300 or 5% of the total tax due (whichever is the highest.) Late by up to twelve months sets you back an extra £300 or 5% of the total tax due (whichever is the highest.) So, a potential total of £1,300 – could be used for a nice holiday!
In case you gave up on the attempt, contact your local AIMS accountant to help you prepare your submission as soon as possible, just make sure you go through our guide on how to speed up the process for your accountant.