THE are two separate camps when it comes to completing your self-assessment tax return. Those who take care of it throughout the year. And those who get their self-assessment in no time. Regardless of which group you belong to, the important thing is that you complete your tax return before the deadline of midnight on January 31, 2022. Here’s how to stay on track.
1. Follow our top tips and tricks for self-assessment of tax returns
Set aside time to collect the papers – a little preparation can keep you from turning and turning at night, so have your papers ready in advance.
– P45 if you have one from your former employer, be sure to dig it up.
-P60 if you quit your job in 2021 make sure you have it on hand as it confirms the total tax you paid on any income with your employer.
– P11D or P9D it is a statement of all benefits and expenses during the year.
Pension contributions – Keep track of your contributions so you can claim the right amount of tax relief (the government will add 25% to every payment you make at the base rate and more if you pay income tax at a higher rate) .
Gift Aid Payments – you can also claim tax relief on charitable donations, so it’s worth checking out any donations and sponsorships you’ve made in the past year.
Personal savings allowance – this can be applied to interest earned on your savings. You could receive up to £ 5,000 interest on tax-free savings.
Don’t miss the January 31 midnight online deadline – you will be fined £ 100 if you do. After three months, you incur even greater penalties.
2. Stay up to date with new tax return changes
Capital gains tax return – you now have up to 60 days to ‘declare and pay’ any tax due on the sale of any residential or non-residential property in the UK from October 27, 2021 (if it was between April 6, 2020 and April 26, 2020). October 2021, it is still 30 days).
Covid support measures – if you have received financial support (such as a Covid grant), you will need to report this on your tax return in company profits or rental income. If you are not doing your own self-assessment tax return, make sure your accountant is aware of this.
3. Beware of Common Mistakes
Don’t be surprised by the paperwork delivery times – inquiries to banks or agents for things like certificates of interest, annual rental or investment statements can take a long time. Delays may result in penalties.
Your contact details – if you are spending time abroad or returning to the UK, remember to notify HMRC of any change of permanent or residential address.
Assets also matter – report a sale / disposition of an asset that has tax implications (such as a car, work of art or jewelry).
Avoid high income child benefit charges – not one of the 60,000 people prosecuted by HMRC1 for high income family allowance tax after failing to register for self-assessment tax returns.
So this is it. Sprint to the end of the online self-assessment if you want to, but often slowly and steadily you win the race.