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Understanding the Need for Income Tax Self-Assessment

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by: No more debt !
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Date: Sun, 7 Aug 2011 Time: 6:16 PM

Did you know that approximately one in three taxpayers is affected by self-assessment? This system gives you greater control and responsibility over your tax affairs. Under this condition, there is a common date for the payment of tax and filing of Tax Returns, which usually falls in the last day of October.

This system, which is known as ‘Pay and File' actually allows taxpayers to file their return and pay the balance of tax outstanding for the previous year at the same time. In case you are one of these people, there is no need to be concerned as long as you keep detailed financial records and meet the deadlines. On the other hand, there are still some who do not understand the need for this process.

This is the reason why, more and more people receive fines for failing to meet the deadline often because they find the filing system unnecessarily long and confusing. Tax returns vary in length as they are customized to each individual's circumstances. It is usually a six-page paper or online tax return, which covers your income from savings and investments, pensions, tax allowances and reliefs, as well as state benefits.

All you have to do is to complete the supplementary pages or online sections checking only the types of income that applies to you. Therefore, it is highly advisable for anyone to maintain an organized record of income and expenditure to support all amounts claimed on your tax return. If you fail to do so, you will be fined up to £3,000. As I said, there are two ways to submit your self-assessment tax return – through online filing or by paper.

Between these two filing system, the most favorable is online filing. It is because it can help you avoid the possibility of paying any form of penalty or fines to the HM Revenue and Customs (HMRC) due to late submission of tax return. You can either use the free HMRC Self-Assessment service or commercial software. Whichever you may decide to use, you will need to register first to get your Unique Taxpayer Reference (UTR) number.

Once you are already registered, the software will then tailor the return to your own personal circumstances based on your answers to a few simple questions stated therein. Thus, you should only answer the portions that are relevant to you. In case you want to avoid the hassle of getting this job done, then why don't you get some professional help online from a tax return advisor to assist you in all your needs?

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Would you like to get some professional help from a tax return advisor in filing your income tax self-assessment? Then all you have to do is click this link for more essential advice and information.

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