How to avoid the most common tax return errors

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If you fulfil the self-assessment criteria and have to complete a tax return, it is vital to include all relevant information and take care to ensure it is accurate. There are many common errors made, and some of those mistakes can result in more or less tax being paid than required, or fines being issued for not taking care when completing the form. A late tax return will be charged an instant penalty, with more penalties being charged for each day that the tax return is outstanding.

Here are some of the most common errors made when completing a tax return, and how to avoid them:

1). Make sure that you submit the original tax return if you complete a paper copy, as a photocopy will not be accepted. You must also remember to sign and date the form, as not doing this will result in the form being sent back to you. Before submitting the tax return, carry out one final check of the form.

2). As another common error, tax returns are sometimes submitted without all the required supplementary pages. Before you commence completion, make a note of which pages you require and make sure that they are all included before submitting to HMRC.

3). Expenses are a complex area and easily misunderstood. If you outsource accountancy, ask the accountant to deal with all expenses claims on your behalf and to check that you are only claiming those that are allowable.

4). Missing deadlines will cost you dearly, with penalties being charged. To avoid missing relevant deadlines, enter the dates that apply to you and your business affairs onto an electronic calendar that will issue timely reminders.

5). If you fail to maintain accurate business records, you are far more likely to make mistakes when completing your tax return at the year end. To avoid this problem, deal with your bookkeeping on a regular basis so that you have all the relevant information available.

6). Keep a record of all income throughout the year so that you don’t forget to include anything. Failure to declare any income could lead to a penalty charge and even prosecution in some cases.

Rather than risk making mistakes when completing your tax return, consider outsourcing to a professional. If you need any advice about the completion of tax returns, contact us as soon as possible.