With the deadline to complete your tax return and pay any tax being the 31st of January, it is time to act if you have not already done this. Paying tax is important to fund essential services and there are steep fines for those who do not pay. However, there are a number of reliefs and allowances that you can claim and it is a good idea to make sure you are claiming all you are entitled to, in order to reduce your tax bill.
Do you need to file a return?
If you are employed and have no other income, the chances are you do not need to complete a tax return, as this will have been taken automatically from your regular payslip. However, if you are self-employed, either as a sole trader or as a limited company, you will need to file a return. If you have any other untaxed income, this too should be declared.
Each year paper tax returns should be filed by the end of October or you can file online up to the end of January. This is for income from the previous tax year that runs from 6th April of one year to 5th April, the next. You can either do this yourself or use the services of an accountant. If you are looking for an accountant, an internet search for your area, such as ‘accountants Chippenham’, will get results like www.chippendaleandclark.com/.
Reliefs and allowances
If you live far away from your work or your employer does not have an office, you may be able to claim a home allowance, usually £6 a week. You may also be able to claim work expenses such as professional fees, work clothes, and travel.
Tell HMRC any charity donations you have claimed Gift Aid on. Charities can claim back 25p for every £1 and higher-rate taxpayers can claim back the difference.
Put savings in ISAs to avoid paying tax on the interest. You should also put money into pensions, as the government adds to this as a form of tax relief.