Tax is just another business expense
The September tax returns deadline is looming, and even though there is no £100 penalty for missing it there are certainly benefits to be had by filing early, not least of which is having the HMRC calculate how much tax you owe and giving you a month's warning for the payment.
If you feel like you are going to miss the deadline anyway then hopefully the following tips will help for the final deadline in January.
First off, letís explore the importance of checking the tax you pay and how to ensure you donít incur unnecessary fines.
1) Check the tax you pay
If you run a business, you will need to complete a tax return; however, your spouse or other family members on PAYE may not. They rely completely on HMRC getting it right Ė but does it?
A recent National Audit Office report highlights HMRC processing errors and that more than 1 million people paid the wrong amount of tax in 2006-07. Whilst some people paid too little, more than 500,000 people paid too much, on average £290 too much. Did you pay too much or too little?
Whether or not you have to complete a tax return, it is easy to check whether you or your family have paid too much tax, by using tax software such as TaxCalc.
2) Donít incur unnecessary fines
3) Donít incur unnecessary interest: plan your cash flow
4) Check what tax relief you are entitled to
Andy Hardy is a former Tax Inspector and Development Director at TaxCalc.com, provider of tax software solutions.
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The Editor © Hardhatter 2007