Posts
With Christmas and the New Year out of the way, our thoughts turn to the first milestone of the year, submitting our self assessment tax returns. When the original paper return forms arrived last April there seemed to be so much time to return the forms that it was easy to put them aside for a short while. Now the deadline is a few weeks away and there is no time to loose.
So, who has to complete a self assessment tax return? For a start, everyone who received a return form from HMRC last year will have to submit a return whether they think tax is due or not. In addition, anyone who has fallen within the tax return sphere during the tax year ended 5 April 2010 will need to file a return for that year. In general, self assessment returns are required from all those who are self employed, company directors, ministers, names at Lloyds, together with those whose income or capital gains have exceeded a certain level.
If you have to complete a self assessment return then the first step is to compile all the necessary records. This is much easier done as you go along through the year so if you haven't already got a tax return file, start one now for future returns. These records will include bank statements, records of investments and investment transactions, and employment records including payroll and expenses. If you are self employed then you will also need your business accounts.
Having compiled the paperwork, you can think about completing your return. Most returns are fairly straightforward but if you are unsure or have more complex financial arrangements it pays to ask an accountant to compile your return for you. Accountants are skilled at submitting returns and maximising tax savings on your behalf. The more organised your paperwork the less they will generally charge and their tax saving advice can result in tax savings for years to come.
The deadline for paper submissions was October so you now have to submit your return electronically. To do this you first have to register and then sign in using an activation code which is posted to you after registration. To register you will need to have your Unique Tax Reference (UTR a ten number code which is on most correspondence from HMR) as well as either your National Insurance number or Postcode. Then go to https://online.hmrc.gov.uk/registration and follow the on screen instructions.
Once you have registered HMRC will post you an activation code which usually arrives within seven days. Once you have this you can activate your on line account and complete the return. If you have asked an accountant to prepare your return for you they can also submit the return on your behalf. Check with your accountant that they are registered agents with HMRC and agree with them at the outset on the registration and self assessment return procedure to be followed.
Because the activation code can take a week to arrive and with uncertain January weather potentially delaying post, it is important that you take steps to register as soon as possible. Also remember that not only will your accountant be busy compiling returns for many of their clients, the volume of people submitting self assessment returns on line may cause problems with the HMRC website. In general, the earlier you start the self assessment return process the smoother it is likely to be.
Having submitted your return, file your paperwork somewhere safe. It doesn't matter if this is in paper form or scanned into an electronic system. The important thing is not to lose or destroy the information. HMRC can ask for proof of your paperwork for up to five years and if you can't provide that proof you may face a fine or request for back taxes.
So, who has to complete a self assessment tax return? For a start, everyone who received a return form from HMRC last year will have to submit a return whether they think tax is due or not. In addition, anyone who has fallen within the tax return sphere during the tax year ended 5 April 2010 will need to file a return for that year. In general, self assessment returns are required from all those who are self employed, company directors, ministers, names at Lloyds, together with those whose income or capital gains have exceeded a certain level.
If you have to complete a self assessment return then the first step is to compile all the necessary records. This is much easier done as you go along through the year so if you haven't already got a tax return file, start one now for future returns. These records will include bank statements, records of investments and investment transactions, and employment records including payroll and expenses. If you are self employed then you will also need your business accounts.
Having compiled the paperwork, you can think about completing your return. Most returns are fairly straightforward but if you are unsure or have more complex financial arrangements it pays to ask an accountant to compile your return for you. Accountants are skilled at submitting returns and maximising tax savings on your behalf. The more organised your paperwork the less they will generally charge and their tax saving advice can result in tax savings for years to come.
The deadline for paper submissions was October so you now have to submit your return electronically. To do this you first have to register and then sign in using an activation code which is posted to you after registration. To register you will need to have your Unique Tax Reference (UTR a ten number code which is on most correspondence from HMR) as well as either your National Insurance number or Postcode. Then go to https://online.hmrc.gov.uk/registration and follow the on screen instructions.
Once you have registered HMRC will post you an activation code which usually arrives within seven days. Once you have this you can activate your on line account and complete the return. If you have asked an accountant to prepare your return for you they can also submit the return on your behalf. Check with your accountant that they are registered agents with HMRC and agree with them at the outset on the registration and self assessment return procedure to be followed.
Because the activation code can take a week to arrive and with uncertain January weather potentially delaying post, it is important that you take steps to register as soon as possible. Also remember that not only will your accountant be busy compiling returns for many of their clients, the volume of people submitting self assessment returns on line may cause problems with the HMRC website. In general, the earlier you start the self assessment return process the smoother it is likely to be.
Having submitted your return, file your paperwork somewhere safe. It doesn't matter if this is in paper form or scanned into an electronic system. The important thing is not to lose or destroy the information. HMRC can ask for proof of your paperwork for up to five years and if you can't provide that proof you may face a fine or request for back taxes.
0 komentar:
Post a Comment