More people than ever are having to file for self-assessment due to being self-employed or having some other form of untaxed income. However, there are still a number of myths around self-assessment that need debunking to help you file an accurate tax return.
Myth One: All Expenses Can Be Claimed
There are certainly some expenses that can be claimed. If you work from home, you can claim back a proportion of the bills. You can also claim travel costs for business trips or a client meeting. However, you cannot claim regular commuting costs. To make these claims you can either tot up the claimable expenses or you can use the £1,000 trading allowance. If you are unsure about whether you can claim an expense, it may be worth using an accountant for self-assessment. You should be able to find one near you using an internet search such as accountants Chippenham, which should give you links like www.chippendaleandclark.com/.
Myth Two: Pay on Time or Else
The payment deadline for tax owed is the same as the return – 31st January. It is certainly true that not bothering to file a return and pay what is owed will earn you a fine. However, if paying would be a struggle, you can set up a time to pay arrangement. If you do forget to pay on time, pay at the earliest opportunity. The good news is that debts to HMRC do not affect your credit score.
Myth Three: Tax Returns Can’t Be Amended After Filing
Many people worry that they have made a mistake on their tax return. It is true that you can incur a fine if HMRC thinks there is a deliberate or careless mistake. However, if you are not completely certain of the details, you can file your return with an estimate, as long as you state this. You will then have a few years to give the correct amount. So if you have given an estimate for 2023/4, you have until January 2026 to add the correct amount online.
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