Common tax return mistakes to avoid
Just one slip up can end up costing you when it comes to filing your tax return. This could mean that you miss out on a refund, end up paying more tax than required, or that HMRC is breathing down your neck and demands an audit. To prevent this from happening, read on to discover the common mistakes to avoid.
Missing supplementary pages
If your main tax return does not include additional income, you will need to provide supplementary pages to HMRC so they can see additional information on life insurance gains, share scheme income, employment deductions, income from property, and stock dividends.
Not declaring all income
You need to make sure you declare all types of income. Otherwise, you could face a severe penalty from HMRC. You may even face prosecution if HMRC deems you have done this deliberately.
Examples of the income you need to include are as follows:
• Employee share schemes
• Capital gains
• Foreign income, including evidence of tax that has already been paid overseas
• Property income
• Interest, dividends from trusts, building societies investments, bank accounts, savings, etc.
• Pension income
• Benefits, including job seekers allowance, statutory sick pay, and paternity/maternity leave
• Income from employment
This is one of the most frequent errors made on tax returns. Make sure you double-check all of your calculations before you submit your tax return.
Trying to claim expenses that are not valid
There are clear rules in place regarding what can and cannot be deducted as an expense. Make sure that any of the expenses you are going to deduct are valid. You should consult with an accountant if you are uncertain.
Poor record keeping
Last but not least, poor record keeping could come back to haunt you, especially if HMRC want to audit your activity. You need everything handy and track properly, from your employee share schemes and expense records to student loan payments, capital gains, and bank statements.
If you'd like to talk to our tax expert about your specific situation please get in touch with our Tax Partner Robin Stevenson using his contact details below:
Robin Stevenson - Tax Partner
Tel: 01825 763 366
Covid Support: What options are available to you and your business?
There have been significant changes to the financial support measures from the government in the past fortnight. This article will summarise the current available options to businesses and individuals at the time of publishing and links to the most up to date information.
Coronavirus Job Retention Scheme Extension & Lockdown 2
The government over the weekend has announced a new national lockdown. The Coronavirus Job Retention Scheme (CJRS also known as the Furlough scheme), will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. It has also been announced that mortgage holidays will no longer end on the 31st of October.
Brexit: Actions for you and your business
As if a global pandemic wasn’t difficult enough for businesses in 2020, December brings with it the looming spectacle of Brexit. The UK is leaving the single market and customs union and the end of the transition period will affect citizens, businesses and travel to and from the EU. This article will discuss the changes and actions for you and your business that may be necessary.
Sign up to receive our private content
straight to your inbox