Time to get your self-assessment tax return finished! Dig out the bank statements, income statements, payslips etc, plus all those expenses receipts you have lurking around your home, purse, wallet, car and back pocket!
The 2014 Self-Assessment Tax Return deadlines are looming large!
- For those few of you that still file a paper tax return the deadline is midnight 31st October 2014.
- Those of you filing electronically it is midnight 31st January 2015.
The only exception to these dates is 30th December 2014. If you owe less than £3000 and want HMRC to try to collect the tax through your tax coding.
Sadly, when 31st January comes round, I usually find myself sat in my office at 11.50 pm, waiting for a client to send through agreement to their tax return, to save them the £100 late filing penalty! That late filing penalty is due whether or not you have to pay any tax these days. So let’s not leave until then.
Filing as early as possible enables to you budget the winter festivities so much easier. As you will know exactly how much you owe the tax man.
I am often asked may tax be paid early, or a standing order set up to pay prior to the payment deadline. The answer is YES! HMRC will happily take your money at any time before the deadline.
You can also arrange a FIXED PRICE AGREEMENT to pay our fees by standing order, to smooth out payment
What can you do to make your self assessment submission easier?
Well you could consider using our spreadsheets, which are downloadable from our website on the resources page. Many clients have used these successfully over the years. Let me know if you need any guidance.
New on the block is XERO accounting software. The cool thing about this is your bank statements link directly with the software over the internet. The software can be trained to identify bank payments and receipts automatically. You and I can both access the software and pass messages about items that need further clarification. Do let me know if you are interested in using this.
For those not interested in recording their income and expenditure with the aid of a computer, the good old paper and pen are still acceptable. The best method I believe is:
- buy a pad that opens right to left, then use a double page for each expense heading, e.g. Travel, Theatre and Cinema tickets etc.
- record in the columns each date, who was paid, and for what, and then the amount. Total up the list for each expense.
- keep the receipts in a separate file or envelope for each type of expense.
- record the income at the back of the pad in a similar fashion. Any deductions from the income can be listed there too. E.g. agent’s commission.
And yes we still do the “brown paper bag jobs”, where no recording has been undertaken by the client. However, those that have recorded their receipts are likely to have a far better understanding of the Tax Return and Accounts that they receive back from us.
Also for those that are up to date with recording their receipts, it makes it an easier process to review whether or not the 2014/15 tax payments on account may be reduced.
Key points for actors & stage managers:
2013/14 will be the last tax year that allows for adjusting profits with Class 1 National Insurance deducted from the source income. The box number this time is 102.
On the tax return for the self-employment pages we always use the FULL pages rather than the SHORT version. As it is believed that the using the SHORT version, makes the return more likely to incur a tax enquiry, than if a FULL version is used.
Here is a list of some other items you may need to send us, if applicable:
- P60 form showing your salary and tax deducted in respect of any employment. If the form is not available, a copy of your monthly or last week’s payslip during the tax year
- a copy of form P11D showing benefits in kind provided to you in connection with your employment during the year
- any PAYE coding notices received in the year
- the amount of state pension received in the year, together with the current rate of payment
- pensions received in the year
- rents received and expenses in respect of any let properties
- interest received from bank and building society accounts
- dividend counterfoils and similar vouchers for fixed interest stocks
- chargeable event certificates on certain bonds and life assurance policies
- any other income arising during the year
- certificate of interest paid in respect of any other loan on which you obtain, or a new loan which you consider that you may been titled to, tax relief, with details of the purpose of any new loan
- details of pension contributions paid in the year (including any paid by an employer on your behalf) and details of the pension scheme in question (including the pension input period)
- charitable covenants paid during the year
- payments under Gift Aid during the year
- assets purchased or sold in the year
- any gifts made where you have retained an interest in the asset or where you will derive a benefit from the asset; details of any other transactions which may affect your tax liability
If you need help with any of the points above please get in touch, you can email us at: firstname.lastname@example.org or call us on: 020 7717 8474.