Let Look at Filing your Self-Assessment Tax Return
If this is your first time doing a self-assessment tax return it can be a bit confusing, especially with a deadline looming ahead. There is still time, though, to ensure you file your tax returns to meet the deadline and claim your UK tax return. This article strives to educate you on choosing the right form to avoid common mistakes made when filing returns online or via paper. Let’s get started then.
1. Apply Early for your Unique Tax Reference (UTR) Number to Avoid Penalties on Missed Tax Deadlines
Similar to a national insurance number, you need the UTR number to file your tax return. This number remains constant throughout your life and must be applied for early before you file your first tax return. And if you have not already applied for your UTR, you won’t receive one before the deadline to file your UK tax return!
- The UTR takes 10 days to be generated and sent by mail
- Once it arrives, it takes 10 days to get the number activated
2. Register Early for your Self-Assessment Tax Return
October 5th, last year was the deadline to register for self-assessed tax returns in the event you have tax dues from 2017/18. However, even if you register late, you will be ok as long as you pay your bill on time.
You need to calculate how much tax is due and submit your payments by January 31st, even though you have not received a tax return.
There are times HMRC may extend your deadline by another 3 months if registered late. Either way, it’s best to pay your dues on time! Talk to one of our tax agents for a consultation on handling your tax affairs, and avoid all the hassle of meeting deadlines and paying exorbitant fines.
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3. Don’t Overlook Important Documents
Don’t overlook the following;
- Address, date of birth and National Insurance number
- P60, P11D forms if employed and P45 if you’ve changed jobs in the past year
- Annual payment plan for student loan payers
Keep your bills, records for a minimum of 6 years.
4. Don’t Get Confused about the Type of Taxes Due
Following are taxes to worry about for self-assessed tax returns
- Income Tax
- National Insurance
- Capital Gains Tax
- Dividend Tax
5. Don’t Fill the Wrong Self-Employed Supplement
- Self-employed – fill in the self-employment supplement SA103 and main self-assessment tax return SA100
- Fill the short form if your 2017/18 turnover was GDP 83,000 or less with no complication. This is not applicable if it’s your first period. Do consult a professional tax accountant to verify the factors.
Related Post: What You Need To Know About Self-Assessment Tax Returns – Paper Returns Help