Questions About 1099

If you receive a letter from HMRC letting you know to send in a tax return, you will , at some particular point need to send it in. There are penalties for late returns so dont ignore it. There also are penalties for inaccuracies and errors - so beware!

Tax returns aren't tricky to fill in, and it’s faster and less complicated if you gather together and sort out all the applicable documentation prior to starting, which might cover self-employment, employment, allowances, savings and investment income. (Hopefully, you will have kept all of these nicely together, so as to avoid the all-to-common, yearly hunt for ‘that ‘ bit of paper or receipt)

First you want to choose how you're going to file your return

Decide if you need to fill in a paper return or complete and file your return online. Filing online has many benefits, including longer cut offs, 24-hour access and instant tax calculations.

Here is a list of the general documentation you will need:

• Records of your business income and expenses
• Details of any purchases or sales of assets
• Details of another income you get - eg from a work
• Information about any income from savings and investments
• Your P45 or P60
• P11D (costs & benefits)
• Pensions info
• Dividend vouchers
• Bank interest, Savings and Investment income
• Redundancy or termination payments
• State benefits/social security benefits
• Exceptional income
• Property Income
• Foreign Income
• Your sole-trader business accounts
• (the list goes on, and only a few of the above will apply to everyone)

Here are some usual mistakes, if you are submitting your tax return on paper:

• Not signing and dating it
• Not including any extra pages needed
• You've downloaded the form although not written your UTR (unique tax reference) number on it
• You've downloaded and used the form for the incorrect year

The self-assessment form has further pages which you may or may not have to complete this is reliant upon your situation. Every one of the major sources of income has a section on the tax return or its own separate pae

If you complete your tax return online and you reply the introductory questions correctly, it'll mechanically include the relevant pages for you to finish.

If you file a paper tax return after the 31 October cut-off point, there is an automatic ?100 fine, because you’ll have missed the cut-off point for paper returns. Whether or not you afterwards try and submit one online, the penalty still applies.

(A specific minority of people are unable to file their tax return on the web. If this exception is applicable to you, then the ?100 fine will not apply, and you will hve until 31 January to file your tax return on paper - if you're unsure then just ask us.).

Accountants Exeteror Accountants Cornwallcan help with your Self Assessments

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