10 Top tips to help you complete your self-assessment Tax Return

If you want HMRC to calculate the tax due on your self-assessment tax return, the September 30 deadline is looming. To help you complete your Tax Return the ICAEW is giving some useful tips and advice to help you.

The actual deadline for filing a Tax Return is 31 January 2007 but HMRC will do the calculation for you if you get the form to them by the end of September. The closing date to receive this assistance is, however, fast approaching.

There's no penalty if you miss this September deadline, but even so the ICAEW advises that you should try to return the self assessment form well in advance of the 31 January to avoid rushing and making errors. If you do miss the 31 January deadline you may end up with a £100 penalty.

Speaking on the release of the tax tips, Anita Monteith, Technical Manager from the ICAEW’s Tax Faculty, said:

“Tax returns can be complicated, and this often depends on the circumstances of the tax payer rather than their wealth. Getting your form in before the end of September ensures that the Revenue will do the tax calculations for you.

“The Institute’s top tax tips provide sound guidance for those with relatively straightforward affairs, however we would advise anyone struggling with their form to contact a chartered accountant."

The ICAEW Tax Faculty’s top tips are:

1. Do you definitely need to complete a Tax Return? Not everyone needs to so confirm with HMRC before starting work on your return.

2. Filing your Tax Return online is quick and easy and using the Revenue’s own software keeps your costs down. Online filing avoids the possibility of processing errors and also ensures your form reaches HMRC safely since you immediately get a receipt.

3. If you want to complete your form online you will need a User ID and a chosen password. These take a week to come through so make sure you do this early. You can find out more about filing your tax return online on the self-assessment pages of the HMRC website.

4. A form that is not completed correctly can be rejected by the Revenue. It is therefore important to carefully check that there are no errors. Don’t forget to sign and date the form and try not to leave any blanks.

5. Records of all information used to complete tax returns must be kept for 22 months after the end of the tax year, or for 5 years and 10 months for those carrying on a business or who have income from letting out property. There is a maximum penalty of up to £3,000 for each tax year for which records have not been kept.

6. If you haven’t been sent a self assessment tax return but have a new source of income or capital gains in 2005/06 on which you need to pay tax, you will need to ask for a Tax Return. You must ask by 6 October 2006.

7. Keep a photocopy of your completed Tax Return. Sometimes they do get lost along the way and you don’t want to have to do it all again.

8. Keep a copy of tax return guidance notes, but make sure that you also have any corrections pages which will be available on the HMRC website.

9. If you want to claim a repayment of tax and haven’t been sent a Tax Return, then you only need to complete a Form R40, Claim for Repayment. HMRC also provide a helpful summary of who does and who does not need to complete a Tax Return.

10. Compare the return with the previous years form. If there are any significant changes note the explanation for them on the form.