Top 10 self assessment tax return tips

With a new-look self assessment tax return on the cards this year, PricewaterhouseCoopers has produced a helpful ten-step guide to help business owners get their returns right.

Alongside the new-style tax return, HMRC has warned "clients" that the filing deadline for paper returns this year is 31st October. If you are filing online, the usual 31st January deadline remains for filing and paying and tax owed.

As the new style returns will need extra care this year, PricewaterhouseCoopers has produced the following tips to help get your self assessment return right, first time!

Top 10 Tax Return Tips

1. When filling in a paper return, people should check that they have all the right pages. Those involved with buy-to-lets will need the property pages; most employees will need the employment pages; and those selling a second property (but not their main house) will need the capital gains pages
2. Ensure all paperwork such as payslips, P45, P60 or business accounts are organised before starting. See our list of the key payroll forms.
3. Everyone has to fill in the first six pages and the questions should be read carefully, particularly on page three, to make sure the correct amounts are filled in. It is wise to treat the form like an exam - one which needs to be 100% right and actually answers the question.
4. Don’t include Individual Savings Accounts (ISAs), Personal Equity Plans (PEPs) or ordinary pension contributions to an employer’s scheme but do include state and other pensions and any other taxable benefits. There is also a new box to be completed for those who work through a service company, which needs care.
5. Remember charitable gifts. HMRC now includes a form to allow people to donate some or all of their tax repayments to charity, if they wish.
6. The new ‘additional information’ pages are for more involved items (for example share schemes, stock dividends and special pensions charges) but also the married couples’ allowance. This shouldn’t be sent back if there is nothing to enter on it.
7. Non-resident or non-domiciled people should look out for the questions relating to them and answer with care as answers could result in additional questions from HMRC resulting from the recent changes to the tax system in this area.
8. Those having trouble with the paper return should remember that if they complete it online, the software and online forms will calculate their tax liability for them. For those that don’t have precise information, they can use estimated figures but they should still explain what they are doing and follow it up with HMRC.
9. There is no need to use pence – round pounds will do, and always round numbers down.
10. A photocopy should be taken and people should remember to sign the forms and send them off in good time, remembering that the tax payment is due by 31 January.