30/03/2020 by Pete Bird 0 Comments
Newsletter April 2020
Self Assessment Tax Returns for 2020
A tax return can be filed as soon after the tax year ends once you have collected all that is required – you do not have to wait until the following January. It is far better and less stressful to get everything together sooner rather than later and of course the sooner you will know what the dreaded tax bill is in the following January. Also, if your tax return is prepared before the second payment on account in July is due and if your tax is less than the previous year, you can apply to reduce it.
Helpful Housekeeping Tips for the Tax Year Ended 5 April 2020
If you were scrambling around last tax year to get everything ready for your accountant or even yourself to enable your tax return to be prepared, why not follow these few tips to make life easier.
- As soon as you receive information relevant for the tax year 2019/2020, make a file (or obtain a proverbial shoebox) to keep everything together. These are a few items you should obtain and keep;
- P60’s or P45’s;
- Pension statements;
- If you are a landlord and claim mortgage interest relief, keep the mortgage statement(s) that are in respect of let property;
- Obtain and keep bank/building society interest certificates for all accounts that pay you interest;
- Keep all dividend vouchers in respect of dividends received;
- Making Tax Digital (MTD), a new way to file your tax returns by submitting five per year is due to come into force in April 2021, but no exact date has been given yet. It might be worthwhile to consider MTD now so you are ready when it actually does come into force;
- Don’t forget that if your spouse or civil partner has not used all their personal allowances, they may transfer 10% of their PA to you, providing you are not a higher rate tax payer.
Tips for Self Employed and owner managed limited companies:
- Obtain and keep invoices and/or receipts for all expenses. HMRC could refuse you tax relief or input VAT if you have no evidence of an expense without a receipt or VAT invoice. Advisory note - fuel receipts etc. do fade if left in sunlight;
- Obtain and keep all bank statements where business transactions are made;
- Write up your records on a regular basis, there is nothing worse than having to write your records up for a long period.
- You should also be aware that some accountants charge a higher fee if preparing your tax return in the January, but please note we never do.
These are only a few ideas to consider and there may be many other “housekeeping” matters you could attend to make your life easier (and your accountants) and take some of the stress out of preparing tax returns.
DATES TO REMEMBER:
1 April 2020 - Due date for Corporation tax for companies with an accounting period ended 30 June 2019.
7 April 2020 - Due date for filing and payment of VAT for the period ended 29 February 2020, unless you submit a paper return then the date is 31 March 2020.
19th of the Month:
Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS300 monthly return to HMRC.
22nd of the Month:
Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.