Doing things the old fashioned way
Over 10 and a half million people in the UK have been sent a notice by HMRC to file a tax return for the 2011/2012 tax year. Many people have to complete a tax return, for example the self employed; company directors; those with rental or other income from properties; some pensioners and those who receive untaxed income or income that cannot be taxed through the PAYE (pay as you earn) system. If you have been sent forms but have misplaced them please follow this HMRC link to find out more.
If you want to file a ‘paper’ tax return you must ensure that you submit the return by 31st October 2012 or face the possibility of hefty fines. Since last year there have been new penalties in place for late returns and filing your return even 1 day late will see you receive a £100 penalty even if there is no tax to pay! Depending on how late you file the fines could reach £1500 or more.
Most of our clients submit their tax returns electronically and for those who choose that system you have until 31st of January 2013 to submit your return – and make payment of any tax due.
If you intended to file a paper return but don’t think you will have the time to gather all the required information, don’t fret, you should just send an online return instead. More info available here
Whichever method you choose it is often worthwhile talking to an accountant first. Information on expenses you can and can’t claim, whether trading as a Limited Company Director or a Sole Trader, could save you a small fortune in tax, and hiring a professional to undertake the work for you gives you peace of mind that everything has been completed correctly.