|
The SA Tax Return is a comprehensive form, with a number of accompanying schedules - but you need only complete those schedules relevant to your circumstances.
For the year ended 5th April 2008 you (or
your adviser) must submit your Self Assessment Tax Return including
the calculation of your tax liability by 31 October 2008.
If you prefer, H M Revenue & Customs (HMRC)
will work
out your tax liability for you provided you have filed by 31 October
2008.
Returns filed online must be filed by 31st
January 2009, so in effect a further 3 months is allowed for electronic
filing.
-
There are automatic fixed penalties for
failing to submit a Tax Return on time
-
There are variable penalties for incorrect Tax
Returns
-
There are interest charges (and surcharges) for tax paid
late
If you're
an employee:
The PAYE system itself was more or less unaffected by the introduction of Self Assessment but you are subject to Self Assessment rules if you need to complete a Tax Return.
If you want an underpayment of tax to be
collected via an adjustment to your PAYE code rather than by direct
payment on 31 January and you are filing a paper return you must submit
your 2008 Tax Return by 31 October 2008. In other cases the deadline is
30 December 2008.
Remember, it's up to you to tell HMRC about anything that may have a bearing on your tax affairs - you cannot use the fact that you were not sent a Tax Return as an
excuse. If necessary, you must ask for one.
If your tax affairs are not up to date, you should consider a complete
review. Many people on PAYE never complete a Tax Return and never check their
codings. As a result, some are paying too much tax. Others are paying too little and are building up a tax problem for the future.
If you
have retired:
The deduction of tax at source from most pensions and investments is unaffected by Self Assessment.
You should, however, check to make sure that the right amount of tax is being deducted from your
pension(s) etc as HMRC will not necessarily do this for you.
There are still millions of pounds of unclaimed tax refunds being held by
HMRC, a large proportion of which relates to retired people.
If you're
an employer:
You need to check
the requirements to provide information to HMRC, your employees and your former employees (see our
Quick Guide to PAYE Deadlines for Employers).
You must also ensure that you are keeping adequate and appropriate records.
If you're self
employed:
Payments on account of tax liability are
due on 31 January and 31 July, with a balancing payment (or refund) to be made on the following 31 January. It is worth remembering that any balancing payment must be made at the same time as the first interim payment for the following year, and that interim payments can be reduced where circumstances have changed.
Self Assessment has also led to more emphasis being placed on the ability to justify the figures included in the business accounts section of the SA Tax Return.
You can face a fine of up to £3,000 if your accounting records are considered to be
'inadequate' (see our Quick Guide to Record Keeping).
If you're
a subcontractor:
If you're a subcontractor in the
construction industry you should be aware the new Construction Industry
Scheme was introduced in April 2007. Further information about the new
scheme is available from the H M Revenue & Customs website at
www.hmrc.gov.uk/new-cis/index.htm
Avoid trouble with Self Assessment. This means:
-
No outstanding Tax Returns
-
No outstanding business accounts
-
Maintaining adequate records
-
Paying all taxes on time
-
Completing Tax Returns early will give
adequate time to provide for any tax that may be due
Please
note: This guide is intended to provide basic information only.
Where specific advice is required, we recommend that you seek proper
professional help; either from this firm or other suitably qualified
person or practice. |
