Tax doesn’t have to be taxing, but don’t miss the deadline

The deadline for those wishing to complete paper tax returns for the 2007/08 tax year was brought forward to 31 October this year. Although the later deadline of 31 January still remains, this is now only available to those who complete returns online.

If you are one of the 9 million people required to complete a tax return it is possible to make the whole process stress free if you are prepared. One of the prerequisites of this is to be organised and make sure that you have all the relevant papers, forms and information together.

Initially, you need to establish whether you are required to complete and file a tax return. If you believe you have to file a tax return but haven’t received a form from HM Revenue & Customs (HMRC), you should take action immediately.

It is important to gather together all of the information you will need to complete your tax return. This will include:
The self-assessment form SA100 (additional forms are required for more complicated tax matters, such as income from abroad and income from letting property)
Details on all income (including accounts if self-employed)

• P60 and P11D forms from employers and pension providers
• Interest statements from bank/building societies
• Information on dividends from trusts and shares
• Life insurance policy payments; and details on anything you can deduct (pension contributions, gift aid)

It may seem obvious, however be aware that a form that is not completed correctly may be rejected by HMRC. Don’t forget to sign and date the form, and make sure you fill in all the boxes that apply to your particular situation. If there are any significant changes on your return to last year, tax inspectors would want to know why. An explanation should also be included on the form.

It is also a requirement that records of all information used to complete tax returns must be kept for 22 months after the end of the tax year, or for five years and 10 months for those carrying on a business or who have income from letting out property. There is a maximum penalty of £3,000 for each tax year for which records have not been kept. You should also keep a photocopy of your tax return in case it goes missing in the post and for future comparisons.

If you are planning on submitting your tax return to meet the 31 January deadline, it would be prudent to start preparing now.