The official tax year has just ended, which means you have from now until the end of January to submit your Self Assessment, if you are doing so online. For most people, the words ‘Self Assessment’ bring about instant stress. However, it does not have to be this way. We have some top tips to ensure your Self Assessment goes as smoothly as possible. Read on to discover more.
Submit your application ahead of time
You don’t have to wait until the end of January to do your Self Assessment. You can submit it any time from now. The sooner you do so the better. Plus, you will know exactly how much tax you owe, and you will have the rest of the year to budget if you have underestimated how much you need to pay, for example.
Follow the rules
You need to be very careful when submitting your application. If you do not follow the rules and input your expenses and income correctly, you could find yourself in trouble if you ever get audited by HMRC.
Collect all information
One of the biggest mistakes people make is failing to collect all of the relevant information for their Self Assessment. When the time comes to fill it out, you may miss out certain deductibles, especially if you have forgot to collect receipts and such like. Some of the things you will need to include are Child Benefits if you or your partner receives them and you earn more than £50,000, dividends on any shares you own, and any interest you receive on your bank accounts.
Register and use the right UTR
This may sound obvious, but you would be surprised by how many people go to complete their Self Assessment without actually registering. You need to register as soon as possible, as it can take a few weeks for your activation PIN to arrive. Therefore, if you register just before your Self Assessment is due, you could find yourself facing fines due to the delay in submitting your form while you wait for your PIN. This information cannot be received over the phone either. Moreover, make sure you include your Unique Tax Reference (UTR). This is a ten-digit number and it is not to be confused with your National Insurance number.
Hire an accountant
There are many accountants in London to choose from, and you should certainly think about making the most of their services. They will ensure that your Self Assessment is filled in correctly and that everything is handled above board, giving you full peace of mind. A lot of people view London accountants as an unnecessary expense. However, they can save you a lot of money by alerting you to tax breaks you may not have been aware of while also ensuring you do not incur any fines for late submission. Moreover, if you take advantage of fixed fee accountancy, you will know exactly what you are paying each month or quarter, and this will make it a lot easier to manage.