That Taxing Time of Year – Part Three

 

IT’S THAT TAXING TIME OF YEAR AGAIN – Part Three

HMRC may know many things but they are not yet psychic! They will not know you need to file a tax return because you are self-employed unless you tell them. The first step in your tax return journey is to complete the registration process with HMRC by completing form CWF1 online.

However HMRC do know a lot about taxpayers in other areas, particularly via the Land Registry (who record all property transactions) the banks and other financial institutions. There are financial penalties for not filing a tax return, so it is a must to register for self-assessment as soon as you need to.

HMRC also target specific areas where they believe people are not complying with the regulations, for some time they have been focussing on rental income and have announced that they are going to be focussing on holiday lets and Airbnbs, they have access to holiday let websites etc. and will use these to target taxpayers. If you have an undisclosed source of income call our team, it is always better to contact HMRC voluntarily as this may reduce the penalties payable for non–disclosure.

Once you have established you need to do a tax return, you have your UTR (tax reference) and are good to go, our top tips for a stress free tax experience (apart from taking advantage of our fixed fee service!) are:

  • Don’t leave doing your tax return to the last minute – the deadline is 31st January 2022 please start in good time
  • Spend time gathering your paperwork beforehand – if you are anything like me you may have forgotten where your 2021 paperwork is and you may need to contact third parties to get copies, do this in good time before you start the return
  • If you are in doubt about how to calculate your figures call our helpline – the advisors can’t sit on the phone while you complete your whole tax return but they can help you with queries, they also know all the rules which may save you tax
  • If you get a huge tax bill at the end of processing the return you may well have made a mistake – call our team for advice

We wish you all a Happy Tax Processing season and don’t forget, we are here to help! 0121 794 2289

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