Now Is the Time to Think About Tax Return

Individual filing requirements vary depending on income, age and other factors. Where tax returns include; information on income, estimated taxes owed, exemptions for which the filer qualifies and other relevant supporting documentation. Therefore, many state governments require the filing of state tax returns and businesses must report their revenues, expenses and employee payments and benefits. Rushing tends to result in mistakes and those errors can slow processing of the tax return, resulting in delayed tax refunds or worse from Internal Revenue Service (IRS). There are different ways on how to submit your tax return;

  1. Send a paper tax return to HMRC, and
  2. Fill in an online tax return online on the HMRC website.

However, making your tax return online has numerous advantages. Depending on how you choose to submit your tax return, the deadline for submitting it will be different, whether you choose to work out how much tax your owe yourself or want HMRC to do it. However, if you receive notice that you must file a tax return after certain date, you’ll need to send back the completed form within three months of the notice’s date of issue.

It’s important to be aware that filing your tax return late, or failing to pay the tax you owe on time, will probably mean you face extra penalty fees and interest charges.

Specifically, you will need to fill in a tax return if:

  1. You are self-employed, a business partner, or director of a limited company
  2. You are an employee or pensioner with an annual income of £100,000 or even more
  3. You have a pre-tax investment income of £10,000 or more
  4. You are a name at the Lloyd’s of London insurance market
  5. You are a minister of religion
  6. You are a trustee or representative of someone who has died..

There are cases when you will usually be sent a tax return which include; if,

  1. you have untaxed income
  2. you make capital gains above the annual exempt amount
  3. you were required to fill in a tax return last year
  4. you are a pensioner over sixty five who gets reduced age-related allowance

Therefore, anyone who receives a self-assessment tax return from HMRC is legally obliged to complete and submit it, either by post or by filing a tax return online and if you miss the deadline and submit a late tax return, you will be liable to pay a penalty and may have to pay interest and surcharges on any tax you owe.

If your circumstances change and you receive new income during the tax year, you must let your tax office know by required dates following the end of the tax year and it will then decide whether you need to complete a tax return.

There are some of the tips to follow if you are not registered for tax returns as follows;

  1. Make accurate claims

Make sure you have the correct documents and proof for every claim you make. Such as; the only use of info and figures that reflect on your supporting documents, don’t inflate the value of your vehicle, if a deduction does not exist – do not claim for it.

  1. Be honest on your tax return

Overstating the number of dependants or expenses for medical claims is a criminal offence.

  1. Do not fall for scams

Do not be fooled by emails asking for your personal info, such as; SARS will also not send you any hyperlinks to other websites (even those of banks) and there are no links to any bank on this website. Find out more in this site : http://www.taxreturn247.com.au

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