Completing your tax return can be taxing, but at Greenwood Tax and Accounting we are here to help you relax about your tax! Here’s 10 things you need to know about completing your tax return in 2023.
- If your income is over £50,000 and you or someone you live with claims Child Benefit, then you may need to pay the High Income Child Benefit charge and include this on your Return.
2. If your balancing payment due by 31 January 2023 is over £1,000 you may be asked to make payments on account towards your liability for 2022/23. If you are expecting your income to be lower in 2022/23 or for more of your tax to be deducted at source then you can include a claim on your Return to reduce these payments on account.
3. If you need more time to pay the amount due on 31 January, you can ask HMRC to set up a time to pay arrangement and make the payment in monthly instalments. For more information and to apply online see HMRC’s website at https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments
4. There were two Self Employment Income Support Scheme grants which paid out during the 2021/22 tax year. If you received one or both of these don’t include them in your self-employment turnover – you need to put them in a separate box on your self-employment pages.
5. If you are due a repayment of tax make sure you tick the box to claim the repayment and include the correct bank account details on page 6 of your Return. If this is an interest bearing account make sure you have also included the interest received on your Return.
6. If your income is less than the personal allowance and your spouse or civil partner is a basic rate taxpayer then you can transfer £1,260 of your personal allowance to them. This is worth up to £252 in 2021/22. The claim must be included on your Return and your spouse must indicate on their Return that they are receiving part of your allowance.
7. If you are self-employed and your turnover is below £85,000 you do not have to include a detailed breakdown of expenses on your Return. You can include the total allowable expenses in a single box.
8. If you have made a disposal of residential property during the 2021/22 tax year and submitted a Capital Gains Tax Return for this, you still need to include the disposal on the capital gains tax pages of your self-assessment tax return. Credit will be given for any tax already paid.
9. If you receive salary income that is taxed through PAYE, make sure you check your tax code for 2021/22 to see whether any tax from earlier years has been collected from your salary during 2021/22. If this is the case then your tax liability may be higher than you expected.
10. Please don’t leave it until the last minute to begin your Return. Unexpected power cuts or internet failures may not be accepted as a reasonable excuse for late filing and there is a £100 penalty whether or not you have any tax liability. In the last few years there has been a relaxation in respect of late filing penalties due to Covid but there has been no announcement as yet that this will apply again this year.
If you are struggling with your tax return, please do not hesitate to get in touch and I’ll be happy to offer any advice or support you need.
