TAXING COMPLETING YOUR SELF ASSESSMENT RETURN


For many, that neatly cellophane packet- ed A4 envelope remains unopened, or maybe for those now on the online system of submit- ting


Assessment Return,


their Self Tax


they are


hoping they can remember where they stored their Gateway password, for when they get round to it…...... that dreaded tax return!


Don’t let it phase you; once you have done


it, as for many, it is the weight off your shoul- ders - the feeling is almost great. Howev- er, remember those at the other end who will be reviewing, check- ing, risk assessing that return, do not have a crystal ball. With the new stream- line system that allows for what


is


known as three line accounts


-income


less expenses = profit/loss - there is actually very little information for HMRC to go on.


Whilst HMRC can obtain a lot of infor- mation about us tax- payers, it is often best to let them know about any specific circumstances that have affected one’s business results, or just simply giving them more informa- tion to help them understand return.


your Some


accountants do not subscribe to this view; in my mind that approach is old hat, and foolhardy. HMRC can no longer pick up the phone or ask a question to try to understand a return more clearly; by law they have to launch an official enquiry. Many enquiries go on forever because once opened, even if a plausible explanation


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is provided straight away, the Inspector needs to try to get a result; that is how it works!


ADDITIONAL INFORMATION


Most recently, I have had a client who had two months off work to have a back opera- tion and recuperate, as driving is the worst thing to do for those with bad backs. Con- sequently this was reported in the addi- tional box,


information together with


details of his business mileage that he had recorded. This was done to help reduce the chances of an intervention (new name for tax enquiry), as it married up nicely with his business


accounts results. Of course both could be substantiated if called upon for proof by HMRC, but the key thing here was that there was a reason that explained why his turnover had dropped and his business prof- it had reduced. Let’s take Cumbria a year or two back for example. Dreadful floods


damaged


bridges and journeys taking three or more times longer due to diversions etc, where unengaged mileage was totally dispro- portionate to what would be the norm. Again, in a situation like this, make a comment; those at HMRC,


especially


those based in Lon- don who centrally select cases, may not


be aware of these facts. It just may tip the scales to prevent that intervention, should your


return come


under the microscope! And finally…………


HOW LONG MUST YOU KEEP YOUR RECORDS FOR?


You must keep your business records for five more years after the normal


filing


deadline of 31 Janu- ary. As this is 31 January 2013, you must


keep your


records until 31 Janu- ary 2018. Don’t leave yourself open to a potential penalty of up to £3000!


Paul Taylor PBT Tax Solutions


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