Tax return tips
A tax return can be filed as soon after the tax year ends, once you have collected all that is required – you do not have to wait until the following January. It is far better and less stressful to get everything together sooner rather than later and of course, the sooner you will know what the dreaded tax bill in the following January will be. Also, if your tax return is prepared before the second payment on account in July is due and if your tax is less than the previous year, you can apply to reduce it. Lesley who keeps our offices running smoothly has compiled a few tips to help.
If you were scrambling around last tax year to get everything ready for your accountant or even yourself to enable your tax return to be prepared, why not follow Lesley’s housekeeping tips for the tax year ended 5th April 2017.
As soon as you receive information relevant for the tax year 2016/2017, make a file (or obtain a proverbial shoebox) to keep everything together. These are a few items you should obtain and keep;
- P60’s or P45’s
- Pension statements.
- If you are a landlord and claim mortgage interest relief, keep the mortgage statement(s) that are in respect of let property.
- Obtain and keep bank/building society interest certificates for all accounts that pay you interest.
- Keep all dividend vouchers in respect of dividends received.
- Don’t forget that if your spouse or civil partner has not used all their personal allowances (PA), they may transfer 10% of their PA to you, providing you are not a higher rate tax payer.
Tips for self-employed and owner managed limited companies:
- Obtain and keep invoices and/or receipts for all expenses. HMRC could refuse you tax relief or input VAT if you have no evidence of an expense without a receipt or VAT invoice. Also, fuel receipts etc. do fade if left in sunlight.
- Obtain and keep all bank statements where business transactions are made.
- Write up your records on a regular basis, there is nothing worse than having to write your records up for a long period.
These are only a few ideas to consider and there may be many other “housekeeping” matters you could attend to make your life easier (and your accountants) and take some of the stress out of preparing tax returns.
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About Peter Bird
Written by Pete Bird of Bird and Co Accountants based in Yaxley near Peterborough. This is an extract from one of my monthly newsletters that our full of interesting tax tips and articles and important dates. To sign up to our free monthly newsletter, please complete your email at the bottom of our home page on our website, www.birdandco.ltd.