So, now you know you need to do a Self-Assessment Tax Return, so how can you do the preparation faster and more efficiently?
If you are submitting your tax return yourself, or preparing paperwork to send to your accountants, the below ideas might help speed up the process.
- Give it priority and make a plan to have it done, we recommend doing it all in one attempt as it won’t take too long.
- Find and collect all relevant paperwork and information (if applicable) such as your business expenses, P60, P11D, P45, annual pension statements, interest earned on savings and accounts, gift aid payments, rental income from tenants and possible earned dividends.
- Gather your records from: National Insurance, Income Tax from Employments, Dividends Earnings, and Capital Gains Tax.
- Gift Aid – have you made any charitable contributions? Can these be included? You would get tax relief on them.
The next self-assessment tax return is for dates between 6 April 2021 to 5 April 2022, and tax must be paid before 31 January 2023. Although many people leave it to the last minute, there is a growing trend of filing early. There are fines for submitting late, even by a day, or by submitting incorrect information.
Remember – Submitting your tax return late will mean you get fined, even a day late means a penalty of £100. If you are late by up to three months means £10 extra for each day late and capped in 90 days, late by up to six months means an extra £300 or 5% of the total tax due (whichever is the highest) or late by up to twelve months meaning an extra £300 of 5% of the total tax due (whichever is the highest).
Don’t be one of the “I had a curse put on me” or “I couldn’t type, because my boiler broke, and it was too cold” people!
Our advice is always to get organised and submit as early as you can. We are happy to help you with that if you need it, but either way, just don’t leave it to the last minute. Contact your local AIMS Accountant for more details.