Common Self-Assessment Tax Return Mistakes
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Common Self-Assessment Tax Return Mistakes
A self-assessment tax return is HMRC’s system for self-employed individuals to declare how much tax they owe based on their earnings. Whether or not you are new to tax, it can be overwhelming if your finances are complex.
At BCS Accountants, this month’s blog looks at the most common self-assessment tax return mistakes. For more information, contact us on 01524 824111.
Missing or Incorrect UTR or NI Number
One of the most common tax return mistakes is entering the wrong UTR (Unique Taxpayer Reference) or National Insurance number.
A UTR is issued by HMRC when you register for self-assessment or set up a limited company. It is a 10-digit code that uniquely identifies you as a taxpayer. Without it, HMRC won’t know who you are when you submit your tax returns.
Your National Insurance number ensures that your National Insurance contributions and taxes are properly recorded under your name.
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Over or Under-Claiming Business Expenses
Another common mistake is over or under-claiming business expenses. Depending on the nature of your work, there are specific running costs that you can claim back in your annual tax return if they are exclusively for trade purposes.
However, some people may claim expenses that they are not entitled to or claim personal rather than business expenses.
Examples of allowable expenses you can claim include:
Office costs
Travel costs
Staff costs
Costs of your premises
Remember to keep records and receipts of all expenses claimed as HMRC may want to see them one day.
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Not Declaring the Correct Salary from PAYE Jobs
If your job deducts your tax through PAYE, you need to ensure HMRC is aware of it and the income earned through PAYE is correct on your return. Otherwise, you could pay more tax than you need to.
With Making Tax Digital, this information is usually generated on your tax return automatically. However, the data may be inaccurate. It is important to check the amount you have earned and what has been taxed from your PAYE employment, so your tax return is correct.
Missing the Filing & Payment Deadline
Every year, the HMRC self-assessment online submission deadline is on 31st January. You should always plan to have your return completed and submitted before this deadline. If you fail to do this on time, penalties can range from a fine of £100 up to 100% of your tax bill.
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Contact BCS Accountants
For advice on self-assessment tax returns, contact our team at BCS Accountants. We are based in Bolton-Le-Sands, near Carnforth, but cover Morecambe, Lancaster and Kendal. Call us on 01524 824111. Alternatively, send us a message via our contact form and we’ll be in touch.
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Contact BCS Accountants
Address:
BCS Accountants & Tax Consultants
Border House, 60 Main Road
Bolton le Sands, Carnforth
Lancashire, LA5 8DN
Contact Details:
Tel: 01524 824111
Fax: 01524 825327
Email: enquiries@b-c-s.co.uk
