Numbers are scary. A mere mistake in digit placement can make a huge difference. An additional zero in a number increases the value. It leads to disaster as well. In the case of tax filing, it can lead to tax penalties.
Sometimes, unintentionally, you make a mistake while filing your self-assessment tax return. There are chances you might miss some entry or put one entry multiple times. These simple, avoidable mistakes on your tax return are the leading cause of delays in calculating the amount a person owes.
Here are the top 5 mistakes that you must avoid while filing a self-assessment tax return:
Not Including All Income/Capital Gains
You might have to face some serious consequences for missing relevant income and capital gains. Deliberately omitting a source of income can potentially land you behind the bars.
Here are some income and gains that you shouldn’t miss from declaring in your self-assessment tax return:
- Income from job
- Additional benefits including paternity/maternity pay, sick pay, job seekers allowance
- Any kind of income or dividend from saving bank accounts, investment, trust or building societies.
- Rent from property
- Foreign income. It must include evidence of tax that has been paid abroad.
- Capital gains
- Employee share scheme
Claiming Un-claimable Expenses
The government has made the information available that what will and what will not be considered as expense. Putting any un-claimable expense can cost you heavy penalties. In case you are in doubt, consult your accountant. Sometimes what you think can be claimed, can’t.
Not Enclosing Supplementary Pages
For any kind of additional income that is not covered by the main tax return, you will be required to include supplementary pages. Relevant additional information includes
- Income from property
- A taxable lump sum from the overseas pension scheme
- Post cessation receipts
- Life insurance gains
- Income from a share scheme
- Certain employment deductions
- Loss relief claims
- A claim to age-related married couple’s allowance
- Interest from gilt-edged and other UK securities
- Deeply discounted securities
- Accrued income profits.
Wrongly Ticked Boxes
You will be under the HMRC radar if you have had incorrect boxes ticked or not ticked when they should have been. You can land in serious trouble as ticking the wrong boxes can open an enquiry against you. Little that you know the body will hold you accountable for inaccurate information and will charge you a heavy penalty.
Missing The Deadline
This might have come at the last, but it should be your priority. Never miss your deadline. It can save you a lot of money as you no longer would be liable to pay penalties. It looks simple to remember, but half of the tax delays happen because the payee forgets about the deadline.
These are the top 5 mistakes that you must avoid while filing a self-assessment tax return.