Ten top tips for completing tax returns
HM Revenue & Customs has published 'Ten Top Tips' to help taxpayers file their self assessment returns correctly before the 31 January deadline, to avoid the £100 penalty.
In 2004/05, HMRC issued 998,000 £100 penalty notices for late filing, from 9.8 million self assessment tax returns.
The 'tips' provided by HMRC are the 10 most common mistakes people make when filing their returns. Roy Massingale, director of self-assessment at HM Revenue & Customs says: "We know people find the process a chore. We are highlighting some of the most common mistakes, so when people send us their return they get it right first time."
The most common mistakes are:
1. A 'yes' tick has been entered in one of the questions 1 to 9 on page 2 of the tax return but the supplementary page has not been sent with the return.
2. The self-employed pages have not been completed, particularly on page SE3 from box 3.74 onwards.
3. Information has been detailed on separate schedules instead of being included in the return.
4. Manuscript notes have been entered on the return i.e. "per accounts" and/or "information to follow" instead of the actual figures.
5. A separate supplementary page for each individual employment has not been completed.
6. The net figure of employee personal pension premiums has been entered, instead of the gross figure, in box 14.11 of the core return
7. The capital expenditure figure has been entered in Box 3.14 of the Self Employment pages, instead of the capital allowances figure (i.e. claiming excessive relief).
8. Question 19 of the core return has not been completed, where a repayment is due.
9. Pay has been entered in box 1.8 on the Employment pages, but any tax deducted has not been entered
10. The return has not been signed, which means it will be rejected immediately.