You are here: Home - Household Bills - How to -

Thousands submit tax returns over Christmas: top tips to make filing yours easier

0
Written by:
12/12/2018
It might not be top of your festive to-do list but getting your tax return done and dusted over the Christmas break will mean it’s out of the way for another year.

Last year, more than 6,000 people filed their tax return on Christmas Eve, 2,500 did it on Christmas Day, and more than 7,500 on Boxing day, according to figures obtained by Hargreaves Lansdown.

The deadline to file an online self-assessment tax return and pay any tax you owe is midnight on 31 January.

If you miss the deadline, you’ll likely face a fine of at least £100.

Most people pay tax through Pay As You Earn (PAYE) so won’t have to file a tax return. You’ll only need to do one if you’re self-employed as a ‘sole trader’ and earned more than £1,000, you’re a partner in a business partnership or your taxable income was more than £100,000.

You’ll also need to file one if you have any other untaxed income, such as money from renting out a property, tips and commission, income from savings, investments and dividends, and foreign income.

If you’re filing a return online for the first time, you’ll need to apply for a Unique Taxpayer Reference (UTRto sign into the Government gateway website. It could take up to seven days to get your code in the post. If you’ve used the system before, it’s worth signing in now and checking you haven’t forgotten your log in details.

Below are some more top tips from Hargreaves Lansdown.

Four tricks to make your tax return simpler

  1. Spend some time on your preparations first

If you’re not great at filing, don’t try to do everything at once: day one should be about tracking down paperwork, and ordering copies of anything you can’t find.

This includes certificates for savings accounts or dividends, pension statements, proof of any employment income and a P11d. If you work for yourself, you’ll want bank statement, sales invoices, receipts for expenses and paying-in books. If you received income from letting property, you need letting agreements, and bills for expenses and management fees.

  1. Make sure you’re claiming for everything you can

Check you’re claiming for all the reliefs and exemptions available to you. This includes pension tax relief and gift aid for higher rate taxpayers. Government figures show that only 22% of higher rate taxpayers claim the additional relief on gift aid they’re entitled to – but it can really add up.

If it seems like a lot of bother to claim for something, check if there’s a simpler option. If, for example, you are self-employed and work from home, you can do the calculations and count some of your household bills as expenses. Alternatively you can just use the flat rate of £10 a month for 25-50 hours a month, £18 for 51-100 hours, and £26 for 101 hours or more.

  1. If in doubt, get help

There’s loads of great information on the HMRC website, which has really improved in recent years. You can find the answer to almost any question that’s likely to crop up. There are also plenty of guides and videos offering tips to save you time and money.

If you can’t find what you’re looking for, then other than on Christmas Day, Boxing Day and New Year’s Day, you can phone the self-assessment helpline. Unfortunately, the closer you get to the 31 January deadline, the busier the helplines get, so you could spend some time on hold. However, if you stick with it, you can get the guidance you need.

  1. If you’re going to need an accountant, get a move on

If you already know that nothing will persuade you to touch your tax return over Christmas, be honest with yourself about whether you’re going to need an accountant to sort it for you, and contact them before the break. Don’t leave it until January, when accountants are snowed under, and many won’t have the time to take new clients on. Professional help will typically cost between £100 and £300, so you’ll need to decide if it’s worth the expense.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week