5 Common Tax Return Mistakes You Should Avoid
Amanda Souza
When it comes to your tax return, there are numerous different mistakes that many people make. Getting ready to submit your tax returns for the last financial year can be somewhat stressful for many people. However, if you’ve been feeling unsure or worried about this, the following five mistakes are among the most common.
1. Missing the Deadline
Perhaps the most common tax return mistake is also the most obvious: missing the deadline. The deadline to file your tax return will vary depending on how you are planning to submit your tax return.
For most people submitting their taxes online, the tax return deadline is the 31st of January. However, if you are submitting your tax return as a paper copy, you need to make sure that this has been submitted by the 31st of October.
These different dates can often mean that many people get confused about when their tax returns are due.
2. Missing out Income
In many cases, people fail to realise that their tax return covers more than just what they earned through self-employed work; It also covers additional payments, such as PAYE income and dividends. As a result, it’s important to check that you have included all of the necessary information to complete your tax return. Missing out some of your taxable income could be a major mistake and could potentially result in a fine, so avoiding this is critical.
- If you are married or in a civil partnership, you must include your spouse’s income if are taxed under Joint Assessment
3. Missing off Your Expenses
While it’s important to ensure you’ve accounted for all your income, including all of your expenses is also vital. Indeed, money is tight for many of us, and tax isn’t cheap when it comes down to it – especially when it’s due all at once!
In line with this, it’s important to recognise that your expenses can significantly reduce the amount of tax you’ll need to pay. Including your expenses can save you hundreds in taxes, so don’t forget about these when submitting your tax returns!
4. Forgetting About Tax Credits
Don’t forget about tax credits! Examples of credits you may be eligible for but aren’t well known :
- If you are over 65 years of age
- One-parent family
- Home carers
- Medical expenses
- If you are caring for a dependent child
While these may not be applicable to everyone, there’s no doubt that tax credits can significantly reduce the amount of tax you’re liable to pay. More information here: Personal Tax Credits, Reliefs and Exemptions.
5. Doing it on your own
Nothing stops you from doing your own tax returns, but it’s vitally important to remember that tax returns are not necessarily as straightforward as they appear. With this thought in mind, if you have been looking for ways to optimise filing your tax returns, getting professional support could be incredibly helpful accordingly.
Professional tax advisors can let you know what you’re liable to pay, which expenses you can reclaim, and so on; as such, this can be exceptionally helpful for your own tax payments, saving you potentially hours of time that you could put to better use.
Final Thoughts:
If you have been looking to complete your tax return, it’s important to keep today’s five key tips in mind. Indeed, completing your tax returns can come with numerous challenges in many cases, but avoiding the most common mistakes can help make your job so much easier! Don’t leave this to chance or overpay on your taxes.
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