First self assessment tax return

dunroving

I filed online for the first time this year. If you simply read and respond to the questions it really isn't very complicated. Also, you can save it midway, go back and make changes, etc. It is one of those tasks that you can learn from doing, rather than reading about it. Just log in and get started.

badmemory

Firstly work out what you think the answer should be. Then --

Take it very slowly, every time you answer a question it will either close down a few other pages of questions or open up other pages. It is one of HMRCs much better functions. Just plod through & take a regular break. When you have done it once and got the answer you expected it really isn't that scary.

pgthompsonco

If you have low income and want to save on costs (avoid professional fees). Do the Tax Return yourself, because only you are responsible for submitting it. If you ask an inexperienced relative to help you are going to end up in trouble, probably with a fine and an argument with the relative. Just ring HMRC for help - they are free. If they are still a problem, ask Citizens Advice B. This is why it is vital to start work on a Tax Return early in the year (from May onwards). It takes time to get it right. There are lots of rules to learn and it takes more time to get used to the deadlines to avoid large and increasing fines. Paying a professional £300 to sort out a problem is less than a £1.300 fine. So think about a professional in August if you have not finished and submitted your Tax Return every year.

[Deleted User]

badmemory wrote: »

Firstly work out what you think the answer should be. Then --

Take it very slowly, every time you answer a question it will either close down a few other pages of questions or open up other pages. It is one of HMRCs much better functions. Just plod through & take a regular break. When you have done it once and got the answer you expected it really isn't that scary.

I am all for having a go at completing the form but, having spent many years undoing such efforts, there is a limit. Unfortunately many believe that a correct return is one where you have been able to successfully progress from one section to the next and ultimately being able to file. The figures may be entirely rubbish but, hey! it must be correct because I have a submission receipt.

Example - my brother in law is a consultant orthopaedic surgeon. He came to me last year as he could not understand why he was underpaid every single year as his only income was taxed under PAYE. It transpired that he completed the return each year before he received his P60 and declared his gross income before pension contributions for TEN years. The same guy used to boast that he was able to complete his return in ten minutes and he was correct - just incorrectly. I was able to amend four tax returns and he received a repayment - the other years could not be revisited.

With respect to the op, he could have submitted the return quite easily while claiming his wife's PAYE tax from he previous job as an expense against her new business and would not be aware of any errors until HMRC chose to investigate and that's IF they ever got round to it by which time similar errors have been repeated on future returns.

Have a go certainly - if you know what you are doing!

[Deleted User]

pgthompsonco wrote: »

If you have low income and want to save on costs (avoid professional fees). Do the Tax Return yourself, because only you are responsible for submitting it. If you ask an inexperienced relative to help you are going to end up in trouble, probably with a fine and an argument with the relative. Just ring HMRC for help - they are free. If they are still a problem, ask Citizens Advice B. This is why it is vital to start work on a Tax Return early in the year (from May onwards). It takes time to get it right. There are lots of rules to learn and it takes more time to get used to the deadlines to avoid large and increasing fines. Paying a professional £300 to sort out a problem is less than a £1.300 fine. So think about a professional in August if you have not finished and submitted your Tax Return every year.

And the £300 is a business expense. If the business generates more than £11500 profit that is a net cost of £213.

pgthompsonco

99.9% of Tax Returns submitted contain an error, and that includes professional submissions first time round. Its only when you see the consequences (on 31st January(quite often) when you see the wood for the trees - sometimes never. Who is responsible? The Tax Payer - it changed in 1997. Before that date you could blame HMRC. Now you pay the fines for any errors or too much tax - only the rich get away with paying too little tax under the law. I am not cynical. Its my experience as a Chartered Accountant after 40+ years in practice. Now I am retired I am taking HMRC to the Parliamentary Ombudsman as their so called "independent" The Adjudicators Office is not really independent as they are not allowed to look at ALL the facts. HMRC still make mistakes they have been doing so since Tax was invented. Philip Geoffrey Thompson F.C.A.

Pennywise

badmemory wrote: »

Firstly work out what you think the answer should be. Then --

Take it very slowly, every time you answer a question it will either close down a few other pages of questions or open up other pages. It is one of HMRCs much better functions. Just plod through & take a regular break. When you have done it once and got the answer you expected it really isn't that scary.

That's fine if you have enough knowledge of tax to make an assumption of what you think your tax should be. Most people havn't a clue. I've seen some right howlers, even from educated and professional people. One self employed bod thought wages to himself was an allowable expense, so he paid himself all the profits and thought he didn't have to pay any tax! Then you have the muppets putting through any expenses they had a receipt for, whether business or not, so ended up claiming tax relief on their weekly shopping, family McDonalds meals, holidays, etc. People these days don't have the ability/patience to research things properly - they see a glib comment on a facebook page and treat it as gospel.

pgthompsonco

Muppetts ? Do not give them a bad name - its the others! Child Support Agency deducted my VAT output from my net of Vat income! swonder why my ex thought I was putting in a fraudulent return. I had to Appeal against a Zero assessment and take them to a Tribunal as they would not disclose their calculations without a personal visit to THEIR offices under supervision from their staff. Talk about an inquisition as I dared to appeal against their Zero assessment! I an now going for HMRC that treat low income people like trash [£1.300 fine for not making any mistakes.when income under £9,000 in 2010]. I have now reached the Parliamentary Ombudsman as their internal appeal system for Compensation is so slow and less than useless [down right liers] Philip Geoffrey Thompson FCA (Chartered Accountant with 40+ years of experience).

pgthompsonco

My sister managed to put her small (exempt) US pension (under £500pa) under her life time allowance for contributions - professional lady yes degree yes common sense? age over 75 justifiable?- probably - any remedy NO unless you ask a professional. How many years was this mistake made? only two years as I did it correctly for her 3 years ago.
Then the easy one put your self-employed income under employment section and not claim any expenses. Got it right previous 3 years.There is no explanation for brain deterioration. But asking for help has its problems, Never ask the person next door or a relative unless you know they are appropriately professionally qualified AND that you can sue them.
GO Qualified. It may be a monopoly and a closed shop (non-qualified - you will have trouble suing, even if you ever knew anything was wrong) but its worth asking for help and usually value for money.

badmemory

They should never have stopped teaching reading comprehesion in schools. We did it all through primary & was a major pain but at least we know what a form means when it says employment income before tax & tax paid.