Tax can be a very complicated business element. So, if you attempt to fill out the HM Revenue & Customs (HMRC ) documents yourself, but don’t know what you are doing, you could land yourself in some seriously hot water.
If you aren’t great with numbers or have a complex tax situation, then hiring the services of an accountant could be a wise move. But before running through the benefits of outsourcing a financial expert, there are a few basics of completing a tax return to consider.
Each year, more than eight million people in the UK automatically receive a self-assessment tax return, which they are required to complete by law. However, these daunting documents are not restricted to the self-employed.
As a basic rule of thumb, you will need to fill out a tax return if you are:
Tax returns are coupled with various filing deadlines; HMRC will contact you, usually in April, if it thinks that you need to fill out a tax return.
These deadlines are very strict and you will face more than a stern ticking off if a) your tax return fails to meet the required standards; and b) it is not submitted or resubmitted by the appropriate deadline.
If you have previously sent your tax return on paper, you will need to complete it and return it by midnight on October 31. Online returns must reach HMRC by January 31 each year.
On April 6, 2011, HMRC introduced new penalties to boost the incentive to file returns on time, and in 2012 around half a million people who had failed to do so received fines of at least £1,200.
As a result of the new penalty system, any person who submits their tax return one day late can expect to pay a £100 fine. Then, a daily penalty, which clocks up at the rate of £10, is charged and capped at £900 (at three months). A further penalty of £300 or 5pc of tax due (whichever is higher) is charged after the three-month deadline and a further minimum of £300 is charged after a six-month late period.
So, all things considered, if you are one of the lucky people required to complete a tax return or are thinking or setting up your own business and will need to declare your tax liability, it is worth asking yourself whether I can complete it myself of hire a professional.
Completing your Tax Return correctly, particularly when non-resident, is not an easy task and also can be very time consuming. For only £130 we can complete and file your Tax Return for you and ensure you claim all the allowable expenses and reliefs you are entitled to (Tax Treaty Claims and Capital Gains are subject to a £25 surcharge), saving you tax. Simply provide us with the information we ask for then leave the rest to us.
We make it easy for you!