Filling in your tax return - Do's and Don'ts

With approximately 876,000 people missing the self-assessment tax return deadline on 31 January last year and receiving a £100 penalty, PricewaterhouseCoopers LLP is reminding people to file their return on time and get off to a good start this new year.

Leonie Kerswill, tax partner, PricewaterhouseCoopers LLP, said:

“Unless you are one of the 84 people who filled in their tax return online on Christmas day last year, you probably find that completing your tax return tends to slip down the priority list over the festive period.

“After the expense of Christmas it would be a shame to incur a £100 penalty for not getting your tax return in on time. Preparation is key, so get your information together before you start and if you need help ask HM Revenue & Customs (HMRC) or a qualified tax adviser in good time.”

The PricewaterhouseCoopers LLP dos and don’ts for filling in your tax return:

DO

• Read all the tax return questions carefully;
• Get all the paperwork together – such as the P60/P11D - before starting;
• Make sure the benefits listed match the P11D (Benefits Statement) and that appropriate expense claims have been made;
• Remember that not all benefits are taxable. Although the state pension and Jobseeker's Allowance are, benefits such as Child Benefit are not;
• Include personal pension payments;
• List Gift Aid payments and any other charitable donations and enter the amounts actually given;
• Make sure the bank or building society interest received plus the tax that’s been deducted (usually 20%) adds up to the gross amount;
• Bear in mind that tax returns can be filled in online – and the HMRC system will calculate the tax bill.

• Leave it until the last minute - mistakes are more likely to be made if it is rushed;
• Miss out any questions or the relevant additional pages;
• Enter income from ISAs or PEPs;
• Include normal pension contributions or associated Additional Voluntary Contributions made to an employer’s pension fund;
• Forget to sign the form and keep a copy;
• Forget that any tax owed needs to be paid by 31 January – it is not just a case of getting the form in. The first payment on account may need to be made for 2006/07 as well. This can be left to the last minute if using the online system but bear in mind the need to register first which can take a day or two to clear.