What Could Be Missed Off Your Tax Return?
We often see HMRC enquiries raised because of small anomalies or incomplete information put on a Tax Return. HMRC can be very fair on penalties if something is missed the first time but if something is missed off your Tax Return every year, penalties will soon mount up. So here’s our quick handy guide to make sure you haven’t missed anything off of your Tax Return.
Based on our experience, these are the most common things missed or not sent to us.
Where tax might be due;
- Student Loan – If you have a student loan, this may be repayable by way of your Tax Return, based on your level of earnings. If it is outstanding, it must be included on your Tax Return but you should also include the payments made if any student loan was repaid in that tax year
- Child Benefit - If you/your partner are in receipt of Child Benefit, and if either of you earn in excess of £50,099, the higher earner of two of you will need to repay some/all of the Child Benefit back to HMRC as a tax charge in their Tax Return. If you earn in excess of £60,000 the full amount of any Child Benefit received must be paid back.
- P11D – Your P11D will show your benefits in kind, which could include medical benefit, car benefit or other benefits. Your employer will need to provide you with this if there is one produced for you so ask for one if you are expecting one
- Investment Income – All investment income must be included in the Tax Return, and this includes any bank interest over £1. You’ll be surprised at the amount of people who forget to include or fail to check for bank interest or small dividend income and then end up with an unnecessary enquiry.
To claim any tax relief due to you, don’t’ forget to send details of any;
- Pension Contributions - If you are a higher rate or additional rate taxpayer, you can claim income tax relief on your pension contributions made in the year, if paid net of basic rate income tax. You can also claim relief on gross Retirement Annuity Contract payments and AVCs
- Charitable Donations – If you are a higher rate or additional rate taxpayer, you can claim tax relief for charitable donations made under Gift Aid, so don’t forget to go through your regular and one-off donations throughout the year and get the tax relief due to you
Please feel free to download our checklist guide to make sure you include everything on your tax return.
FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.