| Completing your tax return can be both frustrating and | | | | Online Tax Return |
| time-consuming but the whole process can be made a | | | | The HMRC online return service is easy to use and |
| lot easier by understanding the processes and | | | | saves time compared to the paper version. In order to |
| procedures beforehand. | | | | be able to use the online service, you must first |
| You can complete your annual return on paper or | | | | register by going to the HMRC website and following |
| online- using either HMRC software or one of the | | | | the registration process. HMRC will then send you a |
| many readily available commercial softwares on the | | | | Personal Identification Number (PIN) and this can take |
| market. We recommend doing this online as it is | | | | up to seven days. Therefore we highly recommend |
| quicker, prevents delays and there is no chance of it | | | | you do not leave registering for the online service until |
| getting lost in the post. | | | | 31 January. Remember, if you do then your return will |
| The deadline for sending your tax return back | | | | be late and you will incur the late filing penalty- |
| The deadlines differ depending on how you send your | | | | therefore do it will in advance. |
| return back- these are called the filing dates. The | | | | A series of questions will be asked by the online tax |
| deadline for paper tax return is 31 October following | | | | return system to bring forward only the relevant parts |
| the end of the tax year, and this is the date HMRC | | | | of the tax return that apply to you. The system will |
| must receive your annual return. If you are completing | | | | then do the calculations for you and will provide an |
| this online, HMRC must receive your tax return by 31 | | | | on-screen help for you as you go along. The system |
| January following the end of the tax year. | | | | has other built-in checks to assist you in getting your |
| It is very important you meet these deadlines as failing | | | | tax return right. |
| to do so will automatically incur a late filing penalty of | | | | Once you have completed the online return you will |
| £100. Another £100 penalty will be incurred if this is | | | | receive an acknowledgement of receipt. |
| still outstanding after six months. | | | | Keeping records |
| If you send your tax return by paper and you miss the | | | | To fill in a complete and correct tax return, you must |
| 31 October deadline, you cannot avoid paying the late | | | | by law keep all records. If your annual return is |
| filing penalty by switching to the online return deadline | | | | incomplete and you are found by HMRC to owe tax, |
| of 31 January. If your tax amount is less than £100 | | | | you may be required to pay interest and a penalty- so |
| however, HMRC may reduce the penalty to an | | | | keep all records and get it right in the first place. |
| amount that is equal to the tax that is due. | | | | Using provisional and estimated figures |
| Paper Tax Return | | | | If you are waiting for some of the information which |
| HMRC guarantees to calculate your tax bill and let you | | | | you need for your annual return, you can use |
| know the result before the payment deadline of 31 | | | | provisional figures to avoid delaying filing your tax |
| January following the end of the tax year, providing | | | | return. If you are using provisional figures, remember to |
| you send your paper return by the filing date. If you | | | | draw attention to this in the 'Any other information' box |
| send your return after the filing date, HMRC cannot | | | | on the paper return or in the white space on the online |
| guarantee to calculate your tax bill and tell you the | | | | return. Please remember to replace your provision |
| result in time for any 31 January payment. | | | | figures with the final ones as soon as you know them. |
| If you would like to calculate your tax bill yourself, or if | | | | Sometimes you may have to estimate an amount, for |
| your paper return is late, you can ask the HMRC for | | | | example, the private proportion of motoring expenses |
| their Tax Calculation Summary pages and notes to | | | | or the cost of using part of your home for business |
| help you work out your tax bill. The number to contact | | | | use. You do not need to replace this figures and you |
| HMRC on for this is 0845 9000 404. You do not need | | | | do not have to draw attention to this kind of estimate. |
| to send the supplementary pages HMRC send you as | | | | You will find available guidance about this on the tax |
| part of your tax return. | | | | return. |