Tax return tips

Tax Return Tips

We recently featured on a blog where we answered a few questions about self-assessment expense claims for landlords. As we approach the deadline for tax return filing we thought we should share a few tips with you.

Don’t leave your tax returns filing to the last minute

HMRC has been sending reminders to taxpayers to file their self-assessment returns. Like many taxpayers you might get tempted to leave it until after Christmas but the sooner you submit it the sooner you will get your refund (if due) and the earlier you will know how much tax to pay on 31/1/15 (if you owe tax to HMRC).

Don’t pay your tax bill late

You will get charged interest and possibly late payment fees if you pay your tax bill late. Once you have filed your tax return and calculated your tax liabilities; you can start saving for your tax bill and managing your cash flow. Remember, you can file your tax return early, but have the benefit of only having to pay any tax liability by the normal due date of 31/01/15.

Take your time with tax planning

There are various options to consider which could minimise your tax liabilities. Tax liability can arise for example, from your earnings, your profit from trade, or from selling chargeable assets. Contact Moore Accountancy for professional advice on tax savings.  For example it may be beneficial to employ your spouse in your business or consider forward planning by setting up an employer pension scheme.

Seek professional advice

As mentioned there are different allowances available for you and your business to maximise tax saving. You could however get confused attempting to interpret the extensive UK tax legislation.

For instance, if you are using one of the rooms in your house as an office you may be able to claim (income or corporation) tax relief, but you need to also know about the possible capital gains tax liability you could incur if you were to sell your house later.

To ensure you pay the tax due and nothing more, contact us for personal and professional advice.