What You Need to Prepare for Your Tax Return

Preparing for your tax return can be a daunting task, especially if you're not familiar with the process or haven’t submitted a return before.

With the risk of penalties or fines for submissions with incorrect or missing information, it's really important to make sure that you have all of the necessary information and documentation at hand for when you submit your tax return.

Key Takeaways:

Firstly, you'll need to gather all of your income and expense documents. This includes your P60, P11D, payslips, invoices, and accounting records. If you're self-employed, you'll need to have a record of all your income and expenses, including any receipts or invoices. Be sure to keep all your documents organised and kept in a safe place throughout the year.

Secondly, you'll need to check if you're eligible for any tax reliefs or allowances. This includes things like charitable donations, pension contributions, and work-related expenses. Make sure you have all the necessary receipts and documentation to prove your claims. By taking advantage of these reliefs and allowances, you can reduce your tax bill and potentially receive a refund.

Not sure what to include in your tax return - or how to submit one? Contact the Blue Skies team today on 01767 699996 or thecrew@blue-skies.tv for help.

Preparing Your Tax Return

When it comes to preparing your tax return, there are a few things you need to keep in mind to ensure that the process goes smoothly.

Prepare Your Income & Expenses Documentation

Before you start filling out your tax return, you need to gather all of your relevant documentation. This includes things like your P60, bank statements, receipts, and any other documents that show your income and expenses for the tax year. If you're self-employed, you'll also need to keep track of your business expenses. To make your tax return preparation and submission as easy as possible we recommend keeping all of your documents in a safe place, and keeping your expense receipts in chronological order so that you can validate your overall expenses figure as quick as possible (if needed!). Remember, should HMRC ever investigate your declared income or expenses then you will need to show evidence of both.

Understand Your Income Sources

To accurately complete your tax return, you need to understand all of your income sources. This includes employment income, self-employment income, rental income, investment income, and any other sources of taxable income. Make sure you have all the necessary information to report your income accurately. Failing to declare income on your tax return is considered serious and can lead to penalties, fines or worse. If you’re not sure what is considered income for your tax return then speak to the Blue Skies team today.

Determine Allowable Expenses

When completing your tax return, you can deduct certain expenses from your taxable income. These are known as allowable expenses. Allowable expenses can include things like pension contributions, charitable donations, and business expenses if you're self-employed. Make sure you understand what expenses you can deduct to reduce your tax liability.

Remember, if you're completing your tax return online, you'll need to have a UTR (Unique Taxpayer Reference) and register for self-assessment. If you're filling in a paper tax return, you can download the form from the HMRC website. Make sure you submit your tax return by the deadline to avoid any penalties.

Filing and Deadlines

When it comes to filing your tax return, there are a few things you need to know to make sure that you meet the deadlines and avoid penalties. 

Register with HMRC

Before you can file your very first tax return, you need to register with HMRC. If you are self-employed or have other sources of income, you will need to complete a self-assessment tax return. To register, you will need your National Insurance number and your unique taxpayer reference (UTR) if you have one. You can register online by creating a government gateway account and activating it using an activation code that HMRC will send you.

Choose the Right Tax Return Form

Once you have registered with HMRC, you can choose the right tax return form to complete. If you’re self-employed, you will need to complete the SA100 form. If you have income from other sources, such as employment, you may need to complete supplementary pages too.

Understand Deadlines and Penalties

The deadline for paper tax returns is 31 October, while the deadline for online tax returns is 31 January. If you miss the deadline, you will be subject to penalties and fines. The penalties start at £100 and increase the longer you leave it. If you have a reasonable excuse for missing the deadline, you can appeal the penalty.

For any tax or accounting support speak to the Blue Skies team today. As specialists in the tax and media space for over 20 years we know exactly how to help you improve your financial wellbeing and reduce your tax burdens in the correct way. Contact us on 01767 699996 or thecrew@blue-skies.tv.