How to Amend your Self-Assessment Tax Return to Beware of HMRC Penalties

 

The self-assessment process is the bane of people contractors and their families. On the other hand, it takes a considerable amount of the time required, there are numerous mistakes that are made that could lead to having to do it again or a penalty. Some mistakes do not result in penalties, but they could cause more tax to be paid than is necessary.

Did You Make a Defect on Your Self-Assessment Tax Form? What to do:

A mistake on your self-assessment tax form is a simple mistake to make. If you discover an error after having submitted it there are ways to correct it. If you have filed the tax return online in the past twelve months, you can submit an online modification form. Once you log in to the HMRC online account, you will see your self-assessment tax return. If you open this form, there is an option to edit the form. If you choose this option, you'll be presented with an array of sections and parts of the form that are available to be changed. It is necessary to choose the appropriate section, then complete the amended information and submit. If you completed your return in paper form, you'll have 12 months from the date of your submission deadline of October (as paper returns are due earlier) you can download the form and complete it correctly before sending it back to HMRC. If you not completed the 12 month deadline it is necessary to send an email to HMRC with a reason for the delay and the error. Changes to your tax return could result in you being required to pay more tax or receive an amount of refund. It is imperative to complete either of these actions when you can. You'll be given an opportunity to apply for and receive the refund, beginning with the time you finish the tax year it is applied to.

HMRC Penalties for Returns that are incorrect

HMRC may impose penalties for wrong returns. The fine procedure is based on a "behavior-based" system that ranges from 0 to 100 percent when assessing penalties for returns that are not correct. The reasonable-care penalty is zero percent is applied when a taxpayer finds an error and is able to report it to HMRC and then 100% penalties will be applied if it is determined that the taxpayer has deliberately made an error on the return, where facts are concealed and the taxpayer is only able to accept the situation after a challenge by HMRC.

Beware of errors and staying clear of mistakes and HMRC penalties for filing incorrect tax returns is vital when submitting your tax returns. Follow our guidelines below to help you prepare for your self-assessment next time and avoid making those nagging mistakes!

Make sure to pay

This is the first thing we discuss regardless of the fact that it's the last thing you'll ever have to complete. A lot more people than you think will take an assessment of their own" and then not do anything. It's easy for you to believe that everything's taken care of but you'll need to organize for the transfer to HMRC by yourself, whether by direct debit or a cheque. Make sure you complete this step in order to avoid charges for late payment or even a rebuke from HMRC.

Keep a Journal of Everything

This will make life much simpler in self-assessment, but it is an area that very only a few freelancers, contractors, and business owners can do correctly. Maintain a simple and easy-to-follow list of each and every expense, dividend, wage, or anything that involves money! When filling on your self-assessment it's likely that having everything in keep in your pocket (preferably using an Excel spreadsheet) makes the process easier and avoids anxiety-inducing search for bank statements.

Take a look at the figures

Verify your records and confirm that the numbers you enter on your tax return correspond to the exact amounts that are in your accounting records. Incorrect entries could lead to you over or under-declaring your earnings and tax liabilities.

The taxpayer is responsible for making sure that the correct amount is reported to HMRC.

Take a look at the questions

Similar to an exam in the classroom, you must be sure to go through the question and ensure that you understand what the application requires of you. If you give the wrong details this could mean that you must re-take the entire process or you may be claiming an incorrect amount of profit or tax and so on. Be sure to verify your information before you sign anything.

Make Changes to Your Self-Assessment

If you realize that you have an error in your tax return, it's not enough time to do anything to rectify it. You are able to go back and correct your self-assessment if you require. You have a year from the normal 31st January tax return due date to make changes to your self-assessment. You can amend your self-assessment through the method you used to submit it, which is online if you submitted it in this manner as well as on paper if did the form on paper.

Make use of an accountant

Of course, the most effective method to avoid all the problems associated with self-assessment forms is simply to engage an accountant for self-assessment tax returns. They are experts to know what's required and have done this hundreds of times prior to. However, it is important to record everything, as it'll simplify their lives a bit simpler! If you've already begun or submitted your self-assessment and feel you require assistance you may not be too late to seek help as well. A certified accountant or you may amend your self-assessment, as long as you're within the deadline, which will find on the Government's website.

If you're looking to complete your self-assessment in time and in a correct manner, think about asking an accountant for assistance. Get in touch with Sherwin Currid Accounting for professional advice and expert assistance. Avoid any errors!