The 2024 tax return season is over! Well, it is if you got your return in on time! Over the last few months we have come across some common misunderstandings and errors for those coming to use for their tax returns.
1) Not realising that a tax return was due. If you have trading (including from Ebay/Vinted/Etsy), interest, dividend or rental income over £1k in the tax year then you should probably be registering. Making a voluntary disclosure for income not declared in prior years is time consuming and expensive.
2) Don't forget your payments on account! Generally, if you have tax to pay on your return that is > £1k then you must make two payments on account towards your next tax year. These then get deducted in the calculation for the next tax year.
3) Gift aid and pension contributions can increase the amount of tax you pay at basic rate (if you are a higher or additional rate tax payer). Take the time to find out what you have paid in the year. Even if you don't need to complete a tax return is may be beneficial to do so to claim back higher rate tax on pension contributions and can lead to a tax refund on your paye paid tax.
4) Not claiming all your costs! Mobile phones, use of home, mileage, workwear, laundry for workwear (uniforms only), professional subscriptions... There is a long list and these can be the difference between paying tax or not or at basic or higher rate.
5) Get your information to your accountant as soon as you can after 6th April. Whilst accountants will always try to get your return in on time, receiving your information on the 28th January causes unnecessary stress for accounts staff.
We have a few months of breathing space and then information requests will go out to clients at the end of April. We have an internal bet on how many we can get done before 31st October, I'll let you know who is buying the drinks at our local in November!
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