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Paying taxes in the United Kingdom (UK) is one of the few certainties in life. There’s also a lot of uncertainty around it, as people tend to struggle with what’s expected of them. Therefore, being armed with the right knowledge, can make taxpaying and filing self-assessment returns, a far less intimidating experience. And if you happen to live in Leeds, you may remove tax-related stress completely by finding accountants in Leeds to help you with all your tax matters. Here are a few hints that could assist you with managing your tax return online, and also how hiring an accountant may help.
Penalties for Late Tax Returns
Remember there are penalties for not submitting your returns on time. Did you know that the fixed penalty for a late tax return is £100? And if that’s not bad enough, after three months you’d be required to pay a £10 daily penalty. Thereafter, you’ll be required to pay further penalties after 6 months.
Find Out If Filing Is Necessary
Find out if you’re required to file a tax return by visiting Her Majesty’s Revenue and Customs (HMRC) website. You could also call the helpline on 0300 200 3310.
Remember that if this is your first time, you may need to register and this could take as long as 20 days. So be sure to commence soonest to prevent those late submission penalties. There are also other sure fire ways to know whether you should file a self-assessment tax return. These are if:
- You’ve earned in excess of £2,500 in non-taxed income from renting your home
- You’ve claimed for child benefits with an income in excess of £50,000
- You’re self-employed
- You’ve profited from share sales
- You’ve profited from the sale on a second home
- You’ve received more than £10,000 from investments
Registering For Your Self-Assessment Return Online
You’ll need to register with HMRC. First register for a Government Gateway account, which will simultaneously enroll you for the online self-assessment. The HMRC will issue you with a Unique Taxpayer Reference (UTR) number, with an activation code via snail mail. Do keep your National Insurance number, PAYE information, and all other income information handy.
Log in to HMRC with your Government Gateway identity and password and follow the prompts. To make your filing easier, it’s always a good idea to incorporate all your income and expenditure into a spreadsheet or Word document. Be advised that you only need your overall amounts, and not an in-depth breakdown. This should decrease time spent on the process.
You should keep you P60 close by if you have earned additional income. Remember to use the correct tax code and don’t forget to include all your gift aid donations, so you can claim for a bigger tax relief. Know what your exact gross and net income is, and try not to confuse the two.
How Hiring A Tax Accountant May Help
Remember that tax legislation changes constantly, and you may find it difficult to keep abreast of that if you’re not too familiar with tax issues. When hiring a tax accountant, you need not worry about that, as tax accountants are totally clued up with tax laws.
If you’re exceptionally busy, you may not have the time to file your tax return. Handing over the job to a tax accountant will surely save you the stress of having to file by the deadline. Accountants are also highly accurate, as they conduct thorough investigations.
Accountants are professionally trained to identify ways in which you can save money. They’re experts at identifying what you can claim for, and can claim for tax deductible expenses you may not even be aware of. Tax accountants are experts at lessening your taxes, and are therefore well worth their hiring fees to complete your self-assessment.
Filing for a tax return can be a bit daunting if you don’t know what’s expected of you. Learn how to streamline your self-assessment returns by arming yourself with the relevant know-how. You can also make things much easier by hiring the services of a tax accountant. Accountants conduct thorough investigations, are aware of all tax legislation, and know how to save you the most money.
