In excess of four million taxpayers need to submit a self-assessment tax return before midnight on January 31st. In this week’s show we will be covering the whos and whys of self-assessment, as well as the penalties that accompany late submission.
We will be looking at:
- Who needs to do a tax return.
HMRC have said that there are as many as 5 million self-assessment submissions outstanding!
This could be you if…
-you are employed but also have untaxed income
-you are self-employed
-you earn more than £50,000 and claim child benefit
-you are a partner in a business, or a company director
-you are a higher-rate taxpayer claiming relief on pension contributions
- What you will need.
Submission can be a time consuming process if you don’t know what you are looking for.
First thing to do is to gather your personal financial records such as household bills, invoices and bank statements dated 6th of April 2014 to 5th of April 2015.
If you are employed you will need you 2014-2015 P60 and P11D. If you cannot locate these, urgently request copies from payroll!
If you are self-employed (or employed with freelance earnings) you will need a complete record of all your accounts and expenses.
Finally, make a note of any interest you have made on your savings accounts.
- The actual submission.
If you’ve never done a self-assessment before you will need to register as a new user. To do this you will need to locate your ten-digit unique taxpayer reference.
For those of you who have use self-assessment online before you will not need to reactivate your account, however you will need your use ID and password. If forgotten, a copy of this can sent to you by post. Unfortunately, this can take more than a week to arrive!
- How to reduce your bill.
The major way for you to trim down your bill is to claim expenses. Little things such as claiming utilities when working from home could make a big difference! If working from home you can also claim a portion of your mortgage or rent, your insurances and even bank charges. Remember to be reasonable about dividing up the costs eg. How many rooms you work in etc.
Do not delay in getting the ball rolling! Registration can take up to 20 working days, and late submissions face a fine of £100.
All this and more will be covered in this week’s show. Listen live at noon on Friday the 15th of January or to the repeat on Tuesday the 19th. Follow the link to Money Talk on Channel Radio to catch up on last week’s show.