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5 common mistakes found on Self Assessment forms

Tax doesn’t have to be taxing. But it is. Filing in your tax return is not easy and we’ve compiled a list of the most common mistakes that we’ve spotted on clients’ previous tax returns before they brought their business over to us here at TWP Accounting.

Annual Investment Allowance 5 common mistakes found on Self Assessment forms

We’re now less than six weeks away from the Self Assessment deadline so it’s more important than ever to speak with your usual contact partner at TWP Accounting to make sure that everything’s included so that the form we submit for you is 100% correct.

Your income

HMRC considers the following as income:

  • money you earn from being employed (for example, as a company direct)
  • dividends you pay yourself from businesses you own (above the £5,000 allowance)
  • if you’re unincorporated, the profits you make from your self-employment
  • income from most pensions
  • rental income (except if you receive less than the Rent a Room allowance as a live-in landlord)
  • benefits you receive from your employer
  • trust income
  • interest on savings above your savings allowance
  • gambling, premium bond, or Lottery wins
  • employee share schemes
  • foreign income (with evidence of tax paid abroad)
  • maternity pay, paternity pay, and statutory sick pay
  • the State Pension
  • Jobseeker’s Allowance
  • Carer’s Allowance
  • Employment and Support Allowance
  • Incapacity Benefit (from the 29th week)
  • Bereavement Allowance
  • pensions paid by the Industrial Death Benefit Scheme
  • Widowed Parent’s Allowance
  • Widow’s Pension

You must declare all income on your Self Assessment form under threat of a financial penalty.

Capital gains

Capital gains tax is payable when you’ve sold something for profit under certain conditions. You have an annual capital gains tax allowance of £11,300 under which you have to pay nothing.

In short, you’ll need to pay capital gains tax on the profit you make over £11,300 in a financial year when you sell the following for profit:

  • any non-primary residential property (for example, buy-to-let and holiday home)
  • personal possessions worth £6,000 or more (other than the car you use)
  • stocks and shares that are not sheltered by and ISA or PEP
  • the sale of the shares in your business.

Supplementary pages

Supplementary pages to your Self Assessment allows you to go into further detail on income that you’ve benefited from during a tax year.

Those include:

  • income from share schemes
  • employer lump sum or compensation payments
  • employment deductions
  • Married Couple’s Allowance claims
  • loss relief claims
  • income you’ve made from property
  • interest from gilt edged and other UK securities
  • accrued income profits
  • gains from life insurance
  • dividends from stock
  • non-qualifying distributions
  • close company loan write-offs
  • post cessation receipts
  • share scheme income
  • other tax reliefs

Double check every figure

We will double check every figure on your self assessment to make sure that you pay the right amount of tax.

That includes your expenses – not every expense can be claimed against your profits. Doing a self assessment without the help of an accountant puts you at risk of making a wrong declaration – something you can be later fined for.

Get your return in on time

Paper returns must be filed by the 31st October whereas digital returns, used by the majority of UK taxpayers, must be submitted by midnight on the 31st January.

Please call us today on 01932 704 700 or email service@twpaccounting.co.uk to talk to your usual contact partner.

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