Tips on making self-assessment tax returns easier

 Tips on making self-assessment tax returns easier

When making your tax returns it is vital that all of your records, including transactions, receipts and expenses are recorded correctly and accurately. Ready for the end of the financial year when your tax returns must be submitted. This process can be difficult and confusing at times, so it makes sense to ensure it can be completed correctly and on time without unnecessary stress and hassle. To do this there are several tips that can help, some of the most useful are listed here.

1. Online account

The first tip is to get an online account registered with HMRC to conduct your tax returns over the internet. This option although not to everyone’s liking, has some advantages over paper tax returns. For example, the deadline to submit your online tax returns is longer than paper, this also means a reduction in paper and paper-based tax with much of the relevant information being uploaded and handled online. If you intend to conduct your tax returns online with HMRC you must have an account registered with them otherwise you will be unable to complete online tax returns. Setting up an account must be done in good time as it may take longer than you think. HMRC is currently rolling out a transition to digital tax and online tax returns which means you should be moving online sooner rather than later. Furthermore conducting your accounting and transactions online also makes monitoring your finances much easier as you can view the transactions and activities in real time and make the necessary changes quicker as you are not waiting for the paper records before you are able to act.

2. Organised

The second tip is to ensure that any and all of your paperwork is present and correct in order to have a complete paper trail for all of your financial activities of the past financial year. The ability to show HMRC evidence and proof of your tax return is essential. If you have become unemployed or changed jobs, you will need to provide evidence of this change to HRMC to ensure that you only pay tax when you need to and if your tax bracket changes that this is recorded and acknowledged clearly. In 2015 the government announced what it called ‘the end of the tax return’  with this decision the phasing out of tax returns began. These are replaced by a single online account from which to conduct and complete all financial and tax requirements for business and individuals beginning in 2016 and expanding in the years ahead to include 50 million individuals and small businesses by 2020.

3. Accountant

The third tip is to use an accountant who will be able to guide and manage much of the tax affairs for you, ensuring that all of your documents and records are accurate which will meet the necessary requirements set out in law and are accountable to HMRC. Failure to complete your tax returns correctly and on time could result in costly fines from HMRC. This which can be avoided with the expert advice and support of accountants who specialise in finance and tax. So it would be a smart move to seek their help and expertise to be sure of the accuracy and legality of your self-assessment tax returns.

4. Up To Date

The fourth tip is to keep an eye on the self-assessment criteria as this can change meaning you may be no longer eligible for self-assessment. The relevant criteria can be found on the HMRC website for you to check against your own financial situation to see if you are still within the criteria or not. You will need to ensure you are aware of your status in good time before the deadline comes around as this could complicate and delay your returns which could, if late mean a fine.

5. Tax reductions and relief

The fifth tip is to make sure you have claimed all the tax reliefs and expenses benefits that are available.  This could save you a significant amount of tax that would otherwise be paying (you don’t want to give the beloved taxman any more cash). Moreover, payments to charities and pension contributions are also available for tax relief and reductions if they are able to meet the necessary criteria, so its well worth checking to see if you could be saving tax in this area.

In this digital age, where tax is increasingly moving online, it is important that you are able to keep up with the changing and evolving tax criteria so you can remain focused on your own interests and work requirements. It is advised that you take a look at the benefits not only of online and slimmed down tax formats, but also the benefits of using accountants who are   best placed in handling your tax returns as they are seasoned experts. The accountants at Contractor Unlimited whose experienced and knowledge of the tax sector will mean your tax returns are in safe hands. Giving you the confidence that all your tax obligations and returns are being submitted on time and correctly.