We all work to deadlines; an important one is looming which will cost you an automatic £100 penalty if your 2022 Tax Return is not filed electronically by Tuesday 31 January 2023. 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 2023.
Don’t put it off!
Here’s a few hints and tips which we hope you find helpful.
- Don’t forget to include any Covid-19 grants
- Interest exceeding £1,000 (for a basic rate tax payer) or £500 (for a 40% tax payer) and dividend income exceeding £2,000 will give rise to a tax liability
- Buy-to-let landlords – only 20% of your increasing mortgage interest costs can be claimed and you can only claim for the cost of replacing furnishings and equipment – is your property investment still commercial?
- If you are renting out furnished rooms in your home, you can earn up to £7,500 tax free!
- Married couples could transfer 10% of the personal allowance between them if one is not liable to tax and the other pays basic rate tax – for the last four tax years
- Don’t forget to include your crypto gains or losses!
- If you have assets that are worthless, could you claim a capital loss?
- Could you claim tax relief for charitable gifts made from April 2022 in your 2021-22 Tax Return if your tax saving is greater?
- In future, ensure the spouse who pays the highest rate of tax makes the charitable gifts!
When your Tax Return has been processed, check your tax calculation carefully. We’ve recently seen instances of HMRC excluding income or allowances.
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.
If you know your 2021 Tax Return needs repairing, this should be actioned by 31 January 2023.
