Know The Planning Tips For Successful Self-Assessment Tax Return

Every nation depends on its taxpayers to fund ongoing projects and improve the standard of living. The United Kingdom is not an exception, where the HM Revenue and Customs (HMRC) collects income tax via the self-assessment tax return. While most taxes are deducted automatically from wages, savings or pension, you must file the self-assessment tax return if you have untaxed income or your tax affairs are too complicated. You can do this online or in the traditional offline way. So, if you are unsure of how to do it, here are some essential planning tips for a self-assessment tax return that you can follow. 

Apply for Your Unique Taxpayer Reference 

First, you need the Unique Taxpayer Reference (UTR). It is a 10-digit code to uniquely identify you as a taxpayer. So, sign up and submit your online application before the deadline. A UTR will be automatically assigned to you. As it takes some weeks to get the UTR, it is best to not wait until the last minute. To get the UTR, submit essential details like your name, national insurance number, date of birth, business address, residential address, business contact number, name of your business, and so on.

Keep A Record Of Your Income & Expenses 

Next comes the task of filling the main section of the Self  Assessment tax return, which is SA100. In the SA100, you have to fill in information like your taxed income, untaxed income, donations to charity, contributions to a pension scheme, and any benefits or allowances. 

Remember, you may have to fill in some additional pages. This will happen if you are a company director, a dual resident,  a foreign national, or have income from capital gains, self-employment, property or abroad. So, keeping a record of all your earnings and expenses will be extremely helpful to accurately fill out the form. It is wise to use the helpsheets and notes available online to ensure that you have filled the section accurately. 

Set Multiple Reminders In Your Calendar  

Lastly, the best planning tip for a self-assessment tax return is to not pay the late fine or penalty for missing the deadline. After all, just setting a few reminders about the deadline is better than getting a penalty, which is easily avoidable. The late fine is £100 if you fail to submit your self-assessment tax return for three months. Even there is a provision of interest on late payments! The only good thing is that it is possible to appeal against the penalty if you have some really sensible reason as an excuse.

Self-assessment tax return demands a lot of preparation. Also, it is very time-consuming to continuously track both income and expenses. So don't hesitate to seek professional help! There are many UK accountants who prefer to offer accounting services at an economical rate. 

Remain stress-free by getting in touch with Gatwick accountants who are both knowledgeable and experienced to not only do the tax submission on time but also will reduce your tax liabilities. With these professionals around you, you can remain absolutely stress-free.