25 days to beat a tax fine
Experts’ warning on Revenue deadline that could cost you at least £100
EXPERTS are warning taxpayers not to put off completing their tax return until the last minute as rushing the forms could lead to mistakes – and big fines.
Around 10 million people must complete a self-assessment tax form every year, typically because they are self-employed, run their own business or have untaxed income or capital gains, such as from a buy to let property, a trust or investment portfolio.
The deadline for submitting the form online and paying the tax due for the tax year ending April 5, 2017 is the end of the month – in 25 days’ time.
The deadline for submitting paper forms has already passed.
But if it is the first time you have filed online – or if you have lost your unique taxpayer reference number or access code – you should allow plenty of extra time, typically up to 10 days, to request the necessary log-in details from Revenue and Customs.
Around one in ten self-assessment taxpayers missed the deadline last year.
There is a flat rate fine of £100 for late submission and further fines if you make mistakes that mean you understate the tax you owe.
Anita Monteith, technical tax manager at the Institute of Chartered Accountants in England and Wales, says putting off filing a tax return could be an expensive mistake.
She says: ‘Failure to file and pay the tax on time will lead to an automatic £100 fine. The longer you delay after that the penalties will increase.
‘Save yourself the headache of rushing – and the potential for making mistakes – by setting aside time now to complete the form.’
Before you start the form make sure you have all the relevant documents, such as details about your employment income – P45 (if you have left an employer during the tax year), P60 (which shows all tax paid for the tax year), and P11D (a record of any taxable benefits received from your employer), or your business accounts if you are self-employed.
You will also need details of any income from investments or property, such as a buy to let investment, and details of items you can deduct, such as charitable gift aid donations and pension contributions.
Put the paperwork into date order. This will make the process smoother.
Set aside any documents relating to the tax year ending in April this year so you will be more organised in 12 months’ time.
Check what supplementary pages you may need, such as forms for declaring income from investments, shares or property. Make a note of these so nothing is overlooked in your haste to complete the task.
There can be steep penalties for not declaring all taxable income and capital gains. Gather details of any assets you have sold during the year and remember to declare all share dividend receipts. Give yourself plenty of time to complete the job – ideally with no interruptions. But Monteith points out you do not need to do the whole thing a t once. She says: ‘The system allows you to save a partly com- pleted tax return to allow completion over a period of time.’ Of course if all this seems too daunting you can pay a professional to do the work for you, although you will still have to provide all the relevant documentation – often the most time consuming part. Expect to pay an accountant between £150 and £250 to complete a straightforward self assessment return. This cost will increase if you are selfemployed or run a small business. Costs will also vary in different parts of the country, London typically being more expensive. Online services such as fixedfeetaxreturn. co.uk and twdaccounts.co.uk charge £150 and £137.50 respectively for simple tax returns for individuals in the pay as you earn (PAYE) tax system.