Last updated: 12 Oct 2021 09:30 Posted in: AIA
With the 31st October paper return deadline fast approaching, we asked AIA strategic partner, GoSimple Tax to provide advise on completing the return and the other methods your client can use to file their Self Assessment tax return.
If your clients are new to submitting Self Assessment tax returns, it pays for them to know that there are three ways of filing. Firstly, you can submit via the HMRC portal and receive instant acknowledgement post-submission. You can also use commercial software to do this for you. Or, you can send a paper tax return to HMRC in the post.
Rachel Rutherford, Director of Policy and Public Affairs added: “Whichever method you chose, it’s important to understand the exact responsibility. For those who are self-employed or let out UK property, paper submissions can be complicated as they involve additional forms and documentation”.
Here are three top tips:
Should your client choose to file a paper tax return, don’t forget to file before the 31st October deadline. Failure to do so will see them start being charged penalties from the 1st November. We would recommend sending the paper submission prior to the October deadline, either through recorded delivery or with some proof of posting in order to prove compliancy.
You have longer to submit online tax returns. The deadline is the 31st January, and you will be charged penalties from the 1st February for any late submissions.
Remember, it isn’t enough to submit the main SA100 tax return. You need to bundle it together with the rest of your clients documentation that references their property or self-employment income.
For any income as a landlord, all that’s required is to file an additional form (SA105) and submit it alongside your regular Self Assessment tax return.
However, with self-employment, the additional sections required of your client could be either the SA103S or the SA103F. The difference between the two is that the former is for those who had an annual turnover below the VAT threshold for the tax year (£85,000 as of 2020/21), and the latter is for those who earn above the VAT threshold.
While you may have historically always submitted your clients tax returns by paper, the vast majority of tax returns are now submitted online. Last year saw only 700,000 paper submissions, for example. Improvements in technology and the extra three months to file are the main incentives to submit an online tax return.
Having an online account with HMRC allows you to not only extend your filing deadline but also check your details at any time to see how much tax is due and act accordingly.
If you’re happy to tweak the way in which you keep your records and adopt digital record-keeping, this will help minimise admin further, as well as enable you to submit your tax returns and automatically calculate your tax.
Lastly, be conscious of MTD for Income Tax now scheduled for April 2024 – whilst this may seem far in the future it will be here before we know it. Adopting a digital approach to filing your Self Assessment now will ease the transition in 2024.
Should your client choose to file a paper tax return, don’t forget to file before the 31st October deadline. Failure to do so will see them start being charged penalties from the 1st November.
