It doesn’t have to be taxing? 19 million hours tell the opposite
Ta x p aye r s wi l l c o l l e c t ive l y rack up 19 million hours filling in their returns this year, according to estimates from Which?
Wi t h t h e s e l f- a s s e s s me n t o n l i n e t a x r e t u r n d e a d l i n e approaching on Januar y 31, a sur vey from the consumer group found that the average time it takes people to complete a return is t wo -and-ahalf hours.
Whi c h ? c a l c u l a t e d t h e 19 mi l l i o n h o u r s f i g u r e b a s e d on the average length of time people said it took and the estimated number of people in the UK who fill out their own tax return, rather than getting a third party to do it.
Its sur vey of 4,000 p eople found a fifth (20 per cent) of people managed to complete their return in less than one hour, but just under one in ten (9 per cent) took more than five hours.
Which? also found gaps in
some people's tax knowledge.
For example, while a third of people correctly identified that they do not have to pay capital gains tax when selling their main home, around a third got the answer wrong and the remaining third did not know.
Ne a r l y h a l f (4 8 p e r c e n t) thought they did not have to file a tax return if their employer automatically deducts tax f r o m t h e i r w a g e s t h r o u g h the pay-as-you- earn (PAYE) system.
Employees in these circumstances do not usually need to send a return if their only income is from their wages - but they may potentially need to fill one in if they have other untaxed income, from renting out a property, for example.
Or if someone's income or that of their par tner is over £50,000 and they receive child benefit, they may need to send a r e t u r n a n d p ay t h e H i g h Income Child Benefit Charge.
Which? has a "jargon-free" online tax calculator at www. which.co.uk/money/tax- calculator and its system allows for returns to b e submitted directly to HM Revenue and Customs (HMRC). Fees of £10 for Which? members and £46 for non-members apply.
According to HMRC, more t h a n 2 , 70 0 c u s t o mer s f i l e d t h e i r s e l f - a s s e s s m e n t t a x return on Christmas Day.
HMRC has also warned taxpayers to watch out for scams and copycat websites.
I t s a i d c u s t o m e r s s h o u l d make sure they type in the full online address - www.gov.uk/ hmrc .