Do you dread preparing your personal tax return? Below are some top tips to decrease the pain and stress of preparing personal tax returns.
TIP 1: Keep all the information you need for your tax return in a safe place
TIP 2: Common Required Tax Return Items
TIP 3: Early Preparation - Donít leave the preparation until the last minute, as then there is less time to find all documents and review everything carefully. If you are due a tax rebate Ė you will receive it the sooner you file the return.
- If you have a salaried job, keep the following PAYE (pay as your earn) documents, P60 (confirmation of the full year salary and tax deducted) and P11D (Benefits in kind statement).
- If you are a CIS contractor, keep all your CIS payslips with deductions, invoices, purchases and receipts.
- If you are a sole trader / partnership you will need to make sure you keep full accounts for your business so that these can be included in your self-employed pages of your tax return.
- End of year bank statements showing any interest paid to you and the tax deducted.
- Dividend vouchers.
- Rental income information, full income and allowable costs.
- All information of any capital gains or losses, for example sale of shares or a second home.
- Mileage expenses paid to you by your employer if paid at less than the tax free allowance
- Pension Contributions
TIP 4: Put Money Aside - Put money aside during the year if you expect to pay tax, perhaps in a tax savings account, so that you donít have to suddenly find a large lump sum.
TIP 5: Seek Professional Assistance - If your personal tax return is going to be complicated, for example, you have capital gains to calculate or a sole trader, get a professional accountant to do this for you, they will be able to prepare the return in the fraction of the time that you would and also may be able to recommend tax saving ideas that you hadnít considered as yet and understand possible reliefs that are available.