| Do you have to complete a self-assessment tax | | | | made a mistake, you have co-operated fully and can |
| return? Maybe it's your first time and you want to get | | | | reasonably expect to have no additional penalty |
| it right without generating an HMRC investigation. Is it | | | | added. |
| possible to deal with your tax affairs in order to ensure | | | | Finally, many people find their tax return is investigated |
| you have the minimum of trouble from the tax | | | | simply because they have completed it in a way that |
| authorities? There is no need to let it worry you but | | | | look suspicious, like claiming you have ٧,000 of |
| there are a number of key things you must do. | | | | expenses in your self-employment and recording |
| Firstly, keep all the relevant records carefully. You | | | | £8,000 in the box marked 'Other'. You don't need |
| have a legal obligation to do this and HMRC are | | | | to be a technical expert to realize that looks wrong. |
| clamping down strongly on taxpayers who keep poor | | | | Just stand back when you have completed the return |
| records. But it also makes sense. The clearer the | | | | and try to look at what you have written through the |
| evidence, and the more quickly you can provide it; the | | | | eyes of a suspicious tax inspector. You clearly do |
| easier your tax return is to complete and the sooner | | | | need to use your common sense and, preferably, the |
| any subsequent argument is settled. Simply having a | | | | services of a professional tax advisor. You would |
| file, folder or tray to put in your tax papers for the | | | | expect me to say that, but it is true that the best way |
| year makes completing the tax return so much simpler. | | | | to ensure the minimum of difficulties with HMRC is to |
| When you have finished the return, then simply file | | | | use a professional. |
| them away and keep the file for seven years. | | | | Certainly, if you have a capital gain to declare it would |
| Secondly, you need to make full disclosure of your | | | | always be wise to consult a tax advisor as this is a |
| affairs. If you have income that you have not informed | | | | complex area and it is easy to end up costing you |
| HMRC about, then you are concealing it from them. | | | | more in tax to do it yourself than it would to employ a |
| They will assume that you are intending to avoid tax | | | | professional. Similarly, the foreign pages can be difficult |
| illegitimately and that will incur a tax-geared penalty in | | | | to negotiate without experience. Self-employment is |
| addition to the usual fines and interest. HMRC now | | | | not particularly complex to declare but you do need to |
| have the power to fine you up to 100% of the tax | | | | be sure that you have claimed all the allowable |
| owing depending on whether you intended to deceive | | | | expenses that you can to. Too often, taxpayers sell |
| and how much you co-operated with their enquiries. | | | | themselves short and pay more tax as a result. |
| So, tell the truth. It's not clever to try to deliberately | | | | So prepare well, saving all your records during the |
| understate your tax liability. If you use an accountant | | | | year. Get the necessary paperwork assembled in the |
| you may not be aware that they are legally obliged to | | | | relevant categories - employment, rental income, |
| make a Money Laundering Report if you are | | | | self-employment etc. Then declare everything on the |
| deliberately trying to defraud HMRC - and there is no | | | | return, checking you have missed nothing. You should |
| lower limit to when they must make a report. If you | | | | also consider using the services of a professional |
| want to save tax, then make sure you get good | | | | advisor. Completing your tax return need not be a |
| advice and do it legitimately. And if you are unsure | | | | headache if you give yourself time to get it right. Don't |
| about anything, make sure you give an explanation on | | | | therefore leave it until the last minute - take action |
| the white space provided on the tax return. You have | | | | now! |
| then made a full disclosure and, even if you have | | | | |