Self assessment

Tax

Self assessment

The Inland Revenue usually dispatches self-assessment forms immediately following the end of the tax year to be assessed.

There is, however, a lot to be said for submitting a return before the 30 September initial deadline - this will guarantee the completion of the tax calculations by the Inland Revenue and will give you the option of having small tax underpayments collected through PAYE coding adjustments.

Do not leave everything to the last minute, if you miss the final filing deadline of 31st January following the end of the tax year, you will leave yourself open to interest, penalties and surcharges.

Tax Tips -

• Make sure that you use personal income tax reliefs and capital gains tax allowances, wherever possible, consistent with your own investment objectives.
• Divide both assets and income between husband and wife to take full advantage of the independent taxation rules.
• Make use of all your entitlements to invest in tax efficient investments such as ISAs and National Savings.
• Consider your options carefully before paying off your mortgage.
• Ensure that your investments are correct for your personal circumstances and sufficiently flexible to allow for changes in family finances and circumstances and tax legislation.
• Review investments each year in the light of Budget changes. What is right for this year may not be next year.
• Advance planning can significantly reduce potential liability to inheritance tax, but take care to ensure that gifting money is not done at the expense of your future financial security.