Self Assessment Tax Returns: Wisteria’s guide to getting it right

Aug. 25, 2009 - PRLog -- London, UK– The final self assessment submission deadline is still some time away, but getting your affairs in order sooner rather than latter is always a good idea.  It removes the worry that often comes with leaving the return to the last minute, you will know your tax liability earlier and can plan for this, plus any repayment you may be due will be repaid earlier.

As a reminder, there are a number of reasons why you may need to complete a self assessment tax return on an annual basis.  Some of the key reasons are if you; are self employed, are a director of a UK company or a partner in a partnership,  have rental income, have earned more than £10,000 in investment income, are non-UK domiciled or have changed your residency status during the tax year.  If any of these apply and you have not previously completed a tax return, you must notify HM Revenue & Customs (formerly the Inland Revenue) no later than 5th October following the end of the tax year.

Once you have received your self assessment tax return, you can complete and submit this yourself or can ask an ‘agent’ to prepare this on your behalf.  Normally this agent will either be a Chartered Tax Adviser or Chartered Accountant.  A good Chartered Tax Adviser will be able to complete your tax return correctly and should also be able to highlight some of the areas where tax savings can be made.  Therefore the fees involved will often pay for themselves.

Finally, the benefits of submitting your tax return early should not be underestimated.  Nick Tagg, Director of Taxation Services at Wisteria explains, “Clients who organise their affairs early benefit from distinct advantages.  Repayments arrive earlier and if you do owe any tax, you are aware of the amount due in sufficient time to arrange your finances. Plus many accountants are so busy in January that you may not get the level of contact and advice you would hope for.”

Wisteria’s Top five tips for preparing your self assessment tax return:

1. If it’s the first year you are required to submit a tax return, make sure you have notified HMRC on time.
2. Consider whether you should be asking a professional for help.  Whether your affairs are complex or more straightforward, professional assistance from a Chartered Accountant or Tax Adviser will often pay for itself.
3. If you are going to prepare the tax return yourself, register to do this online.  It’s faster, easier and you get an immediate response from HMRC.
4. Keep your documentation organised and if possible save the details onto a spreadsheet.  Working from a single sheet is far easier that dealing with lots of loose scraps of paper.
5. DON’T LEAVE IT UNTIL THE LAST MINUTE!  The HMRC online system often crashes near the end of January and getting through to HMRC on the telephone is nearly impossible.  Aim to get your tax return completed before the end of September.

For more information in relation to Self Assessment Tax Returns and other professional services from Wisteria Chartered Accountants, please visit http://www.wisteria.co.uk

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About Wisteria Chartered Accountants:

Wisteria Chartered Accountants is a professional firm based on London. Wisteria offer a range of high quality tax and accountancy services, including Self Assessment Tax Returns, tax advice, business plans, year end accounts and payroll services. Wisteria prides itself on the high quality service it provides to a wide range of clients; for individuals, companies and businesses.

www.wisteria.co.uk