Self Assessment tax returns must be with HMRC on time and should not include any errors, and HMRC have the power to fine you if they decide insufficient care has been taken in completing it. This guide explains how to avoid the common mistakes that can occur when doing your tax return.

Failing to declare all income or capital gains

Not declaring all relevant income or capital gain can result in a penalty, and deliberate omissions could lead to prosecution. Income that must be declared includes employment income, state benefits, pensions, savings interest or dividends, property income, overseas income, employees shares and capital gains. However, some income can be excluded, including interest or dividends from tax exempt investments or Save As You Earn schemes, lottery, Premium Bond and gambling prize winnings, or damages interest awarded by a UK court.

Claiming expenses that are not allowed

What expenses you can deduct depends on complex rules, and penalties for inaccurate claims can be costly. Unless you are absolutely certain, check with a qualified and experienced accountant. They can also advise on items you may not have realised you could claim for.

Improper record keeping

You must maintain proper records and you will need them to complete your tax return. These can include P60, P11D and P45 forms, expense receipts, state benefits, bank statements, pension records, income from property, foreign income, student loan payments, employee shares and capital gains. If you are self-employed, you must maintain business records including invoices, cash books, proof of business mileage, records of takings and purchases, plus details of any money taken out for personal use or personal money put into the business account.

Simple errors

There are some mistakes that are easy to make, even though they may seem obvious. These include ticking incorrect boxes, omitting requested figures, inaccurate National Insurance or Unique Taxpayer Reference numbers, not including supplementary pages and forgetting to sign and date the form.

Missing the deadline

Tax returns are submitted according to the tax year rather than the calendar year, and are completed in arrears. The 2020-2021 tax year runs from 6th April 2020 to 5th April 2021. You must register for Self Assessment by 5th October 2021 if this if your first tax return. The return must be in by midnight on 31st October 2021 if you’re filing a paper tax return or submitted online by midnight on 31st January 2022. You must also pay tax owed by the latter date.

We can help with your tax return

At Adaptive Accountancy, we can help you with your tax return. As experienced professionals offering tax return services in the Goole area, we can ensure your tax returns contain no mistakes. We can also advise exactly what you can claim as expenses, and what you cannot. Filing your tax return via a qualified and experienced tax accounting expert is the best way to avoid errors. As those costly penalties can be avoided, spending some money on accountancy could save you cash in the long term.