Common Mistakes Made on Tax Returns
Whenever the time to fill your tax returns comes nearer, you tend to rush which highly increases the chances of mistakes.
Here are some errors made on tax returns which can result in penalties posed by HMRC.
Failing to complete all the essential pages.
If you fail to complete all the necessary pages like not including PAYE information, HMRC can charge you with fines for missing out such information.
Leaving it too late.
Tax return form fillers make the mistake of leaving it too late to register for self-assessment
, obtain an activation code and apply for taxpayer reference or UTR. While the registration requires up to seven days for completion, the activation code comes through the post.
A one day delay in providing HMRC with the required information for calculating your tax bill can result in £100. However, if pay 30 days late, you need to pay 5% of the tax due.
Completing the return and failing to press the “submit” button.
If you fail to press the submit button after completing filling forms, then as a result you will be charged with £100 fine or even more.
Filling in the “Pensions Box” incorrectly.
You must put the correct details of your pension provider in a box on the return. You need to remember that this box does not accept punctuation or the ‘return’ key.
In the past, many people used punctuation and hit ‘enter’ button. As a result, they ended up receiving an error message and had called HMRC’s helpline for resolving the problem.
Failing to include charitable gift aids
A number of people forget to include their charitable donations on their tax return made during tax year. Do not be one of them and always keep a record if you do not want to miss a tax refund.
Failing to claim capital losses
People usually do the mistake of not claiming capital losses as they think it isn’t relevant. However, in terms of capital gains tax, losses need to be included too. By claiming losses, you can carry them forward and reduce capital gains tax in future.
Including special characters
Special characters like #,’ and “are not allowed in the online boxes so do not include these characters.
To ensure there aren’t any mistakes, you need to double check everything to stay away from penalties. If you need any assistance regarding the tax return services, you can contact one of our accountants in London