Tax Preparation Specialist Issues Guidance to Prevent 2018/19 Self Assessment Tax Return Stress
With the dust settling after the 2017/18 Self Assessment deadline on 31st January 2019, taxpayers are being advised to plan ahead for next year’s Self Assessment tax return to avoid last minute panic and late filing penalties. David Redfern, tax preparation specialist and Managing Director of DSR Tax Refunds Ltd, issued his guidance to make life easier for the more than 700,000 taxpayers who submitted their tax returns on deadline day.
The latest figures from HMRC show that 93.68% of UK taxpayers who were required to submit a Self Assessment tax return had done so by 23:59 on 31st January 2019. However, 735,258 faced a nail-biting race to the deadline by filing on the final day and a further 731,186 taxpayers failed to meet the deadline, facing an automatic £100 penalty unless they can prove to HMRC they had a reasonable excuse for not submitting on time. Redfern advised taxpayers to plan for the future to avoid last-minutes pressures next year. He commented “Advice aimed at taxpayers who need to submit a tax return tends not to begin in earnest until the deadline is looming. However, unnecessary stress as well as potential financial penalty can be avoided by planning your Self Assessment early. If you need to file a tax return by the end of January 2020, you should already be aware of that fact now so you can take early action to make the process run as smoothly as possible”.
Redfern’s first tip is to get organised. Spending time now to get your financial and business records organised will cut down on hassle later. He stated “Knowing what your UTR is, making sure you can lay your hands on letters from HMRC, as well as financial information such as bank statements, invoices and receipts will make your taxes much easier in the long run. You should also check you have an online HMRC Self Assessment account and that you have the login details. These will all add to the worry of Self Assessment the closer to the deadline you leave it”. He added that it was a HMRC requirement to keep adequate business records in order to provide evidence for your Self Assessment tax return. Additionally, thorough and well-kept business records could potentially ensure that all business expenses can be tracked and accounted for.
Redfern reminded taxpayers that Self Assessment tax returns for 2018/19 can be completed as soon as the tax year ends on 5th April 2019. He commented “Most people are aware that the Self Assessment deadline is 31st January in the year following the end of a tax year, but that doesn’t mean you have to leave your taxes so close to that deadline. You might want to wait a few weeks after the end of a tax year to make sure you have all the relevant information to make a start on your tax return, but the sooner you start, the more time you have to find solutions to any problems you might encounter – whether they are technical problems which might impact on your ability to submit a tax return or missing financial information you need to recover”. He added that completing and submitting a Self Assessment tax return early will not have an effect on payment dates for your tax bill.
On the subject of payment, Redfern suggested taxpayers consider now how they plan to pay their tax bill and to budget where possible in order to prevent any last-minute worries about securing available funds to put towards a tax bill. He stated “The earlier you complete and submit your Self Assessment, the sooner HMRC will calculate how much tax you owe and you can take steps to budget for that tax bill. Payments on account should mean that you are making a balancing payment rather than paying in full, unless you are a first-time Self Assessment taxpayer, but HMRC will allow you to set up a budget payment plan where you pay in instalments if that is an easier way to manage your finances”. He advised those taxpayers who were worried about their ability to pay their tax bill to contact HMRC as soon as possible to discuss their options.
About DSR Tax Refunds Ltd
DSR Tax Refunds Ltd are a firm of tax rebate specialists serving clients nationwide. DSR Tax Refunds are tax preparation experts who specialise in identifying potential allowable expenses for tax rebates for clients. Their specialist team can help employed and self-employed subcontractors with all relevant paperwork to ensure their claim is handled in an accurate and efficient manner.
For more about DSR Tax Refunds, visit https://tax-refunds.co.uk/
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