Common HMRC mistake which could you see paying too much tax – act now to avoid hefty cost

HMRC provide advice on self-employed tax returns

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Currently, the deadline for Self Assessment tax return forms is the end of January 2021 and taxpayers are being called to file as soon as possible to avoid running into any mistakes or errors.

According to HM Revenue and Customs (HMRC), 2,828 customers filed their Self Assessment tax return on Christmas Day.

This represents a slight rise compared to the 2,700 taxpayers who filed their Self Assessment form in 2020.

Overall, 31,000 Brits submitted their tax returns between Christmas Eve and Boxing Day.

READ MORE: TSB launches prize draw with £1,000 reward – could you be a winner?

Christmas Eve turned out to be the most popular of the three days with 19,802 tax returns being filed within that particular day.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filling in a tax return won’t have been on many people’s to-do lists for Christmas, but please don’t leave it until the end of January either.

“We have videos, guidance and help sheets to support you – just search ‘Self Assessment’ on GOV.UK to find out more.”

This advice from HMRC is crucial according to many tax experts as the slightest mistake could see people paying more than they need to in tax.

James Andrews, a Senior Personal Finance editor at money.co.uk, revealed how many taxpayers are at risk of losing more money to HMRC.

Mr Andrews explained: “The most common mistake people make with tax returns is submitting an incorrect tax code.

“If HMRC have the wrong details, you could end up paying too much, or too little, so check you have the right code before you start the process.

“Once you’ve confirmed your tax code, the next step is to complete the online self-assessment form on the government website here.

“To complete it, you’ll need to gather all the relevant paperwork and documents, which can include your P60, P45, P11D or a P9D.

“You might also need to provide a summary of any rental income and expenses or statements of earnings from savings and investment.

“If you’ve overpaid tax it’s relatively easy to claim it back. You shouldn’t need to use a third-party company, in fact, you can check whether it’s worth claiming a tax rebate completely free using the HMRC tax checker.”

Furthermore, the tax expert reminded the British public of the usefulness of tax credits as means of saving money from HMRC.

Mr Andrews added: “HMRC can also provide tax credits if you require financial assistance. These are payments from the government to help with the cost of living.

“You can check if you’re eligible for tax credits via the HMRC website, or you can visit the Citizens Advice Bureau for additional guidance.

“If you already receive tax credits, you are required to renew your application every year to ensure your details are correct. You can manage your status here.”

Anyone looking to check their eligibility for certain tax credits is advised to go onto the HMRC website to see if they can apply for them.

Source: Read Full Article