With just days to go before the September 30 deadline for self-assessment tax returns, law firm DMH has given its clients five tips to deal with tax return worries.
Matt Coward, the firm's director of tax, said: "For those who submit their tax return by September 30, the Revenue will calculate your tax due, and collect underpayments of up to £2,000 through your notice of coding.
After that date, taxpayers must calculate their own tax bill and submit the return by January 30 to avoid a penalty."
However, Mr Coward said that wasn't necessarily the end of the story. He said: "Those who are web savvy and wish to send in their tax returns over the internet have another three months, until December 30, to submit their return and the Revenue will do the calculations for you.
"Arguably, that's a bit unfair on those who submit paper returns but it's consistent with the Government's aim of encouraging taxpayers to get online and favouring those who do so."
His five hints for those who are filling in their tax returns are:
* Have a copy of last year's tax return handy as it is a useful memory jogger for sources of income
* Spend some quality time going through your records and paperwork
* Avoid the use of estimates - using estimated figures significantly increases the risk of an investigation.
* Ask for a receipt from your tax office.You can then prove that the return has been received, which could well save a quarrel over penalties later
* There are plenty of sources of help for those in difficulty, from the tax return guidance notes to the Inland Revenue's helplines and tax offices, or from a qualified tax adviser.
Friday September 26, 2003
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