Filing your personal tax return, the top 7 mistakes to avoid

Filing a personal tax return can be daunting, especially with the intricate details and rules involved. Even a small error can lead to fines or missed tax-saving opportunities. That’s why we’re here to help you avoid these common pitfalls.

At BAS, we specialise in making the tax return process as smooth as possible. Here are the top seven mistakes people often make when filing their personal tax return, and tips on how to avoid them.

1. Procrastinating: Leaving your tax return to the last minute can cause unnecessary stress and rushed mistakes. By starting early, you ensure you have plenty of time to gather all necessary documents. This also gives you the chance to seek professional advice if you encounter any complexities.
2. Missing Deadlines: The deadline for filing your self-assessment tax return online is 31 January each year. Missing this can result in an initial £100 fine, with further penalties if the delay continues. Make sure to mark this date on your calendar and set reminders to avoid costly fines.
3. Incorrect Information: Accuracy is paramount when filling out your tax return. Ensure that all your personal details, like your National Insurance number and Unique Taxpayer Reference, are entered correctly. Double-check figures to prevent errors that could prompt HMRC to investigate.
4. Ignoring Deductions and Credits: Many taxpayers miss out on valuable deductions and credits simply because they are unaware of them. For instance, if you work from home, you might be eligible for home office expenses. Similarly, contributions to certain pension schemes or charitable donations can offset your tax liabilities. Make sure to research or consult a professional about what you qualify for.
5. Not Seeking Professional Help: While it might be tempting to tackle your tax return on your own, the complexities of the UK tax system mean it’s easy to miss out on crucial details. A professional can help you navigate these complexities, ensuring that your return is accurate and optimised for savings.
6. Forgetting to Declare All Income: Most sources of income must be declared on your tax return, including rental income, investments, and earnings from side hustles. Failing to do so can result in penalties and interest charges. Keep meticulous records of all income throughout the year to make this process easier.
7. Failing to Plan for Tax Payments: It’s important to plan how you will pay any tax you owe. HMRC offers several payment options, including spreading the cost over 12 months. Understanding your payment options can help you manage your finances and avoid late payment penalties.

Avoiding these common mistakes can simplify the tax return process and potentially save you money. At BAS, we offer experienced and personalised tax return services designed to help you navigate the complexities of the UK tax system. Contact us today to ensure your tax return is accurate, complete, and on time.