By Dan Cozens, accounting manager, Armstrong Watson
If you haven’t already made a start collecting the relevant documents you need to complete your online self-assessment tax return – now is the time to do so.
Leaving it until the last minute can lead to increased stress and anxiety, errors and omissions not to mention potential delays and penalties. This year, there were fewer than 3.4 million people who had not filed their 2021/2022 tax return a week before the January 31 deadline.
Those who do not file their tax returns or pay the tax they owe on time (also by January 31) will face a penalty – starting with an initial £100 fixed penalty before daily penalties are issued and additional penalties of 5 per cent of the tax unpaid arise 30 days, six months and 12 months following the submission deadline.
While it can seem a daunting task, by starting earlier, your approach will be more organised and you will therefore reduce the risk of mistakes and have greater peace of mind.
By taking to following practical steps you can transform a potentially stressful task into a manageable experience:
- Gather your records including receipts, bank statements and P60 forms
- Familiarise yourself with the tax bands, deductions and reliefs applicable to you
- Break down the process into manageable tasks and set achievable deadlines for each stage
- Regularly review your progress and make necessary adjustments as your circumstances change
- Once you’ve completed your return, submit it well ahead of the deadline to avoid any last-minute hurdles
Remember, self-assessments are an essential part of fulfilling your tax obligations, so embrace the process and start early. If your tax affairs are complex, you may wish to consider assistance from an accountant or tax adviser.
Whether you complete your own tax return or use an accountant please get your records organised as soon as possible to file your tax return in good time. Apart from avoiding unnecessary penalties, it will be much less stressful and allow time to budget for your tax liabilities – particularly if there are surprise tax liabilities that arise. You can then look forward to enjoying the Christmas season.
If you would like assistance in completing your tax return, please get in touch on 0808 144 5575 or email [email protected]
