Tax season may be confusing to some, laws, rules and regulations change every year and what you may have done in the past may need some adjusting. Here are 5 ways to tackle your taxes this year.
Figure out if you need to file
There are some criterias put in place for those that need to file taxes. Knowing this will save you time, if you are one of the select few that do not. Those who need to file taxes each year are those who are self-employed, receive more than £2500 in untaxed income from things like renting properties, you or your spouse/partner make more than £50,000 and at least one has claimed child benefits, and many more. Visit https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return for more information about the requirments for filling for taxes.
Get your paper work together after registration
Taxes can be a lot of work if you do not have the proper documentation. Make sure you spend some time gathering all the paperwork needed before you file. These files include your P60/P45/P11, PAYE coding notices and all certifications needed for investments. If you are self employed will you will need bank statements for proof of income.
Pay attention to penalties
It is important to stay on top of your taxes since there are penalties and fines given if you do not have them filed on time. The first fine is £100 followed by £10 a day after three months, and so on after six and twelve months. It is important to make sure all documents are submitted on time, to avoid having any money taken out of your tax return, or extra money owed to the government.
Don’t leave things out
This is very common when filing, since there are a ton of documents to take care of beforehand, but it is essential that you do not leave anything out. The information that you submit will determine your return, and also determine your tax brackets for the following year.
Always pay what you owe!
Paying what you owe in taxes is a must, and you can not get out of it. The government wants their funds and will do anything to take it. To be safe, if you know you have a balance that is owed, pay it direct debit before January 31st, so that it is cleared and off the record.
The tax process may be confusing, but with these few tips you could be well on your way to having a successful tax season. Make sure to read more taxation articles at www.issacquriesh.co.uk