Self-assessment deadline is approaching

January 4, 2018

We all work to deadlines; an important one is looming which will cost you an automatic £100 penalty if your 2017 Tax Return is not filed electronically by Wednesday 31 January 2018. If you bury your head in the sand and also forget to pay your tax bill, tax geared penalties and further automatic penalties will be charged from 28 February 2018.

Don’t put it off!

For 2016/17, be aware that;

  • Most savings income will have been paid gross; do you have an unexpected tax liability?
  • If you are renting out furnished rooms in your home, the allowance has increased to £7,500
  • Buy-to-let landlords;
    - 2016/17 is the last year 100% of your finance costs can be claimed; and
    - Don’t claim 10% Wear and Tear; claim the cost of replacement furnishings and equipment instead 
  • Married couples could transfer 10% of the personal allowance between them for 2016/17 and 2015/16 to achieve a tax saving of £432
  • Valuable capital losses need to be claimed to use them in the future; keep a note indefinitely
  • Maximise tax relief for charitable gifts by
    - Claiming those made in the current tax year against 2016/17
    - Ensure the spouse who pays the highest rate of tax pays!

When your Return has been submitted, check your tax calculation carefully. Sometimes HMRCs systems incorrectly allocate allowances resulting in you paying more tax than you should.

If you are employed or receive a pension, always check PAYE Coding Notices. Our digital world allows HMRC to make adjustments to collect tax they think you might owe sooner.

The above list is intended to highlight some general points but if you would like advice on how these may apply to you, please get in touch with us on  01223 810100.

 

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