Of the 11.2m tax returns expected to be submitted to HMRC, only 6m have gone in so far, so it will be a busy month! Tax returns must be filed by 31 January 2015, but there are some things you will need to take into consideration when filing them.
Points to look out for:
i) You have to register to file your tax return online, this takes up to 10 days. However, if you miss this deadline, we can still file online using an agent reference without having to wait – so if you’re concerned, remember that we can assist.
ii) If you haven’t had your record set up so cannot file a tax return (so if you started trading in 2013/14) we can still calculate your tax – most penalties are based on unpaid tax – so long as the tax is paid on time, penalties will be much lower when the tax return is eventually submitted.
iii) Payments on Account – taxpayers making payments on account towards the 2014/15 tax liability can reduce these payments if income levels have reduced (or more tax is withheld at source). This is relevant to people who have retired/ sold rental properties/ gone from being self employed to employed etc.
Tax is a great prompter for you to review your finances e.g. rental properties could be moved into joint names to access lower rate tax bands, surplus wealth could be gifted or put into trust to mitigate inheritance tax, sole traders or partnerships may look to incorporate. If you would like to speak to someone about your options with tax please do not hesitate to contact us.