Time to get on top of self-assessment tax returns
Now is the time to understand what is owed to HMRC and the reliefs that may have been overlooked.
The deadline for self-assessment tax returns is just a few short weeks away, with tax due needing to be paid on 31 January 2023.
Individuals are encouraged to ascertain their tax liabilities, well in advance of the filing deadline to ensure they can arrange their finances in the most efficient way possible to meet the tax liability in time.
Thinking about the current tax year with rising interest rates, it is possible that interest received on savings may be more than the savings allowance of £1,000 and with resulting tax liabilities potentially higher than expected. There may be the possibility of reducing your tax liability by making pension contributions and whilst the amount on which you can claim tax relief is limited, it is possible to carry forward used allowances for up to three years.
Think too on the tax reliefs you can claim. These will include relief on charitable donations where gift aid was claimed, relief on any losses made on the sale of shares, and any tax-efficient investments such as EIS and SEIS, although it should be remembered that the appropriate certificates will be needed.
In addition to income tax, other taxes need also be considered on your self-assessment tax returns.
Do not forget to include any capital gains, including those on disposals of residential properties that have already been reported to HMRC. Any losses, perhaps resulting from crypto investments, can also be used to offset against those games, and can be carried forward and offset against future capital gains. Child benefit is also often overlooked, particularly the clawback for those earning over £50,000.
If you need assistance or advice on self-assessment tax returns, please contact our tax team today.
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