Top tax return tips
Jan 08 2007
With the tax return deadline looming, it’s vital that you fill in the forms correctly to avoid any penalties. If you are not filing your tax return online you will need the relevant documents in good time to meet the 31 January deadline. Smallbusiness.co.uk and Tracy Ebdon-Poole, CEO of TaxCalc.com, offer the following tips to help with your tax return:
Provide records of all expenses
It is important to keep records to support details of expenses claimed against your earnings. These could include details of trips and business miles and additional costs such as parking and tolls.
You may want to provide copies of receipts, vouchers, credit card statements and any other proof of payment, such as cheque stubs or bank statements, to support your claim.
Calculate numbers carefully
To minimise the chance of the HM Revenue and Customs (HMRC) querying your return, you should make sure that 'net income' figures plus 'tax deducted' figures add up to the 'gross income' figure.
Foreign income documentation
If you receive income from overseas you must declare profits in the UK. If you are UK-domiciled, you are taxed in the UK on all your overseas income, including rent from/sales of foreign property and overseas investments. If you are not UK-domiciled, then you will be taxed on foreign income brought back into the UK.
You may also have to complete a tax return for that country - don’t worry, if your UK tax bill is higher than the foreign one, you shouldn't get taxed twice.
Sign your return
Don't forget to sign and date your paper tax return. This is one of the most common mistakes made when filling in the form.
Remember the deadline is midnight 31 January 2007 for paper and online filing. If you are sending a paper document, you might want to think about recorded delivery to ensure you have proof of receipt.
Get some advice
When filling in any part of the self-employment form you may want some advice to establish which costs are tax liable and which are not. You can call the Helpline on 0845 9000 444 for guidance on how to complete your tax return (open evenings and weekends).
For future reference, when you register as self-employed you are invited to attend a workshop at your local tax centre. You will be able to gain valuable information to help you process your tax more efficiently.
Complete your return online
The benefit of filing online is that the calculations are done automatically, so you can find out straight away how much you owe or if you are due a refund.
You can fill in your return in stages online as your information will be saved as you work. You receive online acknowledgement when your return is received and HMRC certifies the service as safe and secure.
For more information on how to complete your form online, click here.
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