Here’s how doing your books could make you richer rather than poorer

SARAH Coles, a personal finance analyst at Hargreaves Lansdown, said doing a tax return doesn’t just mean paying tax. “You may also be able to claim money back, too,” she added. Here’s how:

Pensions tax relief Pension contributions automatically attract tax relief at 20 per cent. Higher rate taxpayers can claim another 20 per cent via their tax return. Many don’t realise they can do this. Make sure you enter the gross value of contributions on your return. Sarah said: “This is both the money you paid in and tax relief at 20 per cent.”

Remember Gift Aid If you tick the Gift Aid box when giving to charity, you can reclaim 20 per cent tax on your donation from the taxman. Higher rate or additional rate taxpayers can reclaim the rest of the tax through their tax return. Sarah said: “Less than a quarter bother to do it but it can really add up.”

Decide if you should claim flat-rate expenses If you’re a sole trader and use your home or car for work, you can either calculate what you spend for work purposes, or claim a flat rate. Sarah said: “Use the simplified expenses checker at gov.uk/simplifiedexpenses-checker to see which option is better for you.”

Divide joint accounts If you have a joint stocks and shares account, you should split the total dividends and capital gains by the number of account holders and only put your share on your tax return.

Don’t overlook other expenses If you subscribe to magazines or newspapers for work, you can claim these as expenses. You can also apply for any clothing you use exclusively for work, such as clothes with your work logo on, uniforms and protective garments. Sarah said: “Sadly, this doesn’t include suits.”

Correct previous mistakes If you’ve made a mistake in the past four years, you can claim a refund. Write to HMRC saying you’re making a claim for “overpayment relief” and include proof, a signed declaration saying details are correct. Also outline how you want the repayment to be made.