Search: Help completing your tax return
- Complete your tax return online- Tax saving tips
Avoid the fines and submit your tax return by the 31st January. It seems a no brainer doesn't it? But every year thousands of people miss the deadline and pay the price. And if you want the ease of doing this online, Revenue and Customs say you must start the process by the 22nd January to give them enough time to send you a password. Here's what you need to know:
Deadlines and details
For the year ended 5 April 2007, you must file your Self Assessment Tax Return with the HMRC by 31 January 2008. If your Tax Return is not with the HM Revenue and Customs (HMRC) by this date a late filing penalty of ¯¿½100 will be charged.
You must also pay the balance of income tax due and any capital gains tax payable for the year ended 5 April 2007 by 31 January 2008. Late payment can result in penalties and interest being charged. You can submit online using the HMRC's website.
So what do you need to do to make the process as simple as possible?
Get together all the documents you will need before you start. Remember, by law, everyone must keep records of their income and expenditure. You may also need these records if you ever have to make a claim, for example, for tax allowances.
Normally, you will have to keep your records for about two years after the end of the tax year to which they apply. Self-employed people and business partners will have to keep their records for about six years. (A tax year starts on 6 April in one year and finishes on 5 April in the next.)
For most employees the key things you will need are:
- P60 which give details of all income and tax paid during a tax year and is supplied by your employer during the year
- P11D this sets out any employee benefits and expenses - again supplied by your employer
- Your HMRC notice of coding which shows your tax allowance entitlements and tax brackets. The Revenue generally sends these out in January or February
- Any building society or bank interest payment details
- Share dividend vouchers
- Contract notes for any shares bought or sold during the year
- Details of any pension contributions or receipts
- The self employed should also have financial statements or accounts for their business.
Then you can start filling in the forms. The HMRC is trying to encourage people to file their returns online. Anyone wanting to file over the internet must first register with the HMRC and this can take at least a week so start early. But if you have all your data together once you start filling in the forms online it can take less than half an hour to complete.
When filling out the forms if you cannot enter exact figures make sure you put in your best guess and make it clear that they are estimated figures and get the final figures to the Revenue as soon as you can. Don't delay sending the form off.
