If you’re not used to filing self-assessment tax returns, they can seem like a minefield. Here are a few tips from our team:
DO get yourself registered for the self-assessment system. You’ll need a Unique Taxpayer Reference (UTR) number, and they’ll only send it by post. It can take a while, so don’t wind up missing a deadline due to a delay with receiving the letter! You will also need an account and activation code for the Government Gateway site if you want to file online.
DON’T ignore the deadlines or assume it’s okay to be a few days late. If you reach February and still haven’t filed your return, you’ll be walloped with a £100 fine. That’s just for starters, of course.
DO let the taxman know if you’ve got a genuine reason for missing the deadline. If it’s not your fault, he might give you a little breathing room. Don’t count on catching him in a forgiving mood and make sure your excuse is a good one. A major illness might get you off the hook for a week or two.
DON’T assume that you’ve been asked for a tax return by mistake. It can happen but ignoring the demand just because it’s unexpected is always a mistake. If you can prove you don’t need to file a return, HMRC will back off. Until you do, though, they’ll be expecting your paperwork on time.
DO file your self-assessment return even if you know you won’t owe any tax this year. It doesn’t matter how little you earned, HMRC still wants to know about it.
DON’T assume that HMRC doesn’t care about your hobby selling stuff on eBay. If you’re doing enough of it, they’ll call it a business and expect a self-assessment tax return from you.
DO remember to file your self-assessment return, even if you folded your business this year. You need to make sure your books are up to date until the very last day you were trading.
DON’T think you can skip over the self-assessment pages about renting out property just because you make a loss on it. Whether you’re up or down on the deal, you’ve got to account for the money.
The biggest “DO” of all: Talk to AcuAccounts if you need help with your self-assessment return or can’t understand why you must file one. Making a mistake or missing a self-assessment tax return deadline could wind up costing you more than just the tax you owe.
Far too many people are paying more than they should, simply because the rules are too complicated. AcuAccounts tax experts are here to help you understand the self-assessment process, even if you’re due a tax refund and providing support throughout tax return service and tax code queries.
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