As the run up to the 31 January 2020 UK deadline for online self-assessment tax returns is fast approaching, panic can set in, especially if you are submitting these returns for the first time. This update is to draw your attention to key points to consider as you finalise your self-assessment return:
- First time online users – have you received your activation code?
- All Tax-free allowances and claimable expenses inclusive?
- Are you at risk of default to meet the deadline?
- Are you at risk of defraud by tax fraudsters?
- First time online users
If you are completing your self-assessment online for the first time, you should have registered by now and received your “unique tax reference” (UTR). You should have also requested for an activation code to access your account.
If you have not requested for your activation code for your account, it is important to do that immediately as this could take a good couple of days.
2. Tax-free allowances and Claimable expenses
Maximising your allowances will mean that you can earn more money before you become liable to pay tax. Tax-free allowances include personal allowance, marriage allowance, personal savings allowance, dividend allowance. Refer to the HMRC website for a full complement of the current applicable tax-free income and allowances. //www.gov.uk/income-tax-rates
It is common for people who pay tax by self-assessment to end up paying more tax because they fail to claim for expenses they are entitled to. Refer to the HMRC website for details self-employed tax allowable expenses. //www.gov.uk/expenses-if-youre-self-employed
3. Risk of Default to meet deadline
If you have still not received documents and information to support your figures and it likely that you might miss the 31 January deadline, it is better to file your returns on time and estimate the figures rather than filing your tax returns late. You can make a change to your tax return after you have filed it; note that for the 2018 to 2019 tax year, the latest date to amend your returns is 31 January 2021. Any additional tax payable or tax refund due will be based on the amended tax returns submitted.
HMRC issues an immediate penalty of £100 for late submissions even if no tax is owed. Additional penalty is raised if submission exceeds 3 months.
4. Risk of Defraud by fraudsters
The HMRC is warning taxpayers to be aware of fraudsters in the run up to the 31 January deadline. Some of the common techniques used by fraudsters include
- phoning taxpayers offering a fake tax refund
- pretending to be HMRC by texting or emailing a false link which takes customers to a false page, where their bank details and money will be stolen;
- threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately
Customers can find out more information on how to avoid and report scams and recognise genuine HMRC contact on their website:-//www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-excise-and-vat-fraud-reportin
5. What can Invicta do for you?
Invicta has the benefit of using online platforms to easily register you and your business, compute your tax liability, and submit your tax returns online, reducing the need for paperwork. We will act as your tax agent, removing the administrative burden associated with tax return preparation and submission, ensuring that your returns are submitted on time in order to avoid penalties, errors, protect you from fraudsters and ensure that you maximise all your tax-free allowances and claim all expenses you are entitled to. Call Invicta Accounting on 01624 672358 or email us at email@example.com to find out more about how Invicta can assist you.