Avoiding Costly Errors: A Guide to Accurate Self-Assessment Tax Returns
Published 9th January 2024
This article discusses the significance of accurate self-assessment tax returns, common errors to avoid, and our tips for accuracy.
The Significance of Accurate Self-Assessment Tax Returns
Accurate self-assessment tax returns play a crucial role in ensuring businesses and individuals are not burdened unnecessarily with avoidable tax bills and penalties.
Errors in tax returns can lead to inflated tax bills or penalties for underpayment, making accuracy in self-assessment a necessity.
Common Errors in Self-Assessment Tax Returns
Common mistakes in self-assessment tax returns, such as missing or incorrect Unique Taxpayer Reference (UTR) or National Insurance (NI) numbers, incorrect figures, ticking the wrong boxes, over-claiming or under-claiming allowable expenses, not including all income, and missing supplementary pages can result in potential penalties. For example, inaccurate figures or not including all income can lead to underpayment of taxes, which HMRC may penalise.
To mitigate these errors, the professional accountants at Stevenage-based Hammond Barr can provide expert tax return assistance. With our team of AAT-qualified technicians, Hammond Barr offers dedicated customer service to ensure accurate and timely self-assessment tax returns.
Tips for Accurate Self-Assessment Tax Returns
Being aware of tax relief can considerably reduce your tax bill. Preparing for payments on account, which could be larger than expected, is essential. Using the correct tax code is also vital to prevent overpaying taxes.
Adherence to HMRC deadlines
Filing tax returns on time is important to avoid penalties and maintain compliance. Hammond Barr Accountants can provide guidance and support throughout this process, ensuring that individuals and businesses meet all HMRC regulatory requirements.
Correcting Mistakes in Self-Assessment Tax Returns
Suppose a mistake is identified on a self-assessment tax return. In that case, it can be corrected within a year after the filing deadline. HMRC may correct minor errors or contact the taxpayer with queries. However, more severe issues can result in higher tax bills and penalties.
Benefits of Professional Accountancy Services
Hiring professional accountants for tax return assistance can significantly reduce the risk of errors in self-assessment tax returns. Hammond Barr Accountants, for instance, offer a complete range of accountancy services to help businesses grow their tax-efficient sales and profits.
Our services include tax planning, bookkeeping, payroll, VAT returns, and more.
We take pride in our dedication to providing excellent customer service. As a Xero Certified accountancy firm, we aim to take care of our client's finances so that they can focus on their business operations.
Avoiding common mistakes in self-assessment tax returns is crucial for individuals and businesses to prevent unnecessary tax bills and penalties.
We provide reassurance and expertise in this process. Explore our services for efficient and accurate tax returns by contacting us.
Want to know more?
Share this post: