As summer comes to a close, taxpayers begin to prepare for “self assessment” tax returns.
Although the deadline for submission isn’t until January 2014 it is worth preparing for Tax deadline preparation.
For those who make returns annually remember the following:
- All earned income must be declared.
- Unearned income should also be disclosed – such as room/property rental, pension income.
- Bank and Building Society interest paid to you. Even though taxed it must all be declared.
- Share dividends, unit trust dividends, even though taxed they must be declared.
- Capital Gains made must be included in your annual declaration. Sale of business, shares in partnerships sales, property sales, goodwill sales, all should be declared. Even if no tax is payable tell the Tax Office. You may even have tax losses to use!
Should you overlook any declarations HMRC will take a view. All interest bearing accounts information is returned to tax authorities.
Failure to declare, even though tax has been deducted, can trigger a tax enquiry, often leading towards a tax investigation.
You should also ensure maximum claims are being made for legitimate claims, such as protective clothing, using a room at home for business usage, travel etc.
Collect your information and outgoings claims and ensure all are entered into your tax return.
After, a refund or repayment of tax can arise by making correct declarations.
Incorrect information can cost not only tax due but also penalties and interest for non declaration.
If you have niggling worries then seek professional advice.
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