It's the end of tax year and even though next year is still so far away, we're already feeling that clock ticking down on us. To make your life easier this time around, here are a few things you can do to feel in control when it comes to taxes.

Your income

Generally speaking, your income from employment is reported on a p60, which your employer will have given to you by now. However, there are other items which can easily be forgotten, and these can include the following:

• Bank interest received
• Benefits in kind – which your employer will give you shortly on form p11d
• Termination payments – although the taxable element should be included within your p60. Do be careful if you received income after your p45 was issued, as this will not be included.
• Income from rental property
• Foreign income – if you are UK resident and UK domiciled you are taxed on your worldwide income.
• Capital gains
• Income from share portfolio’s. Make sure you request a consolidated tax certificate.
• Dividend income

Your deductions

Deductions are normally the least understood area of taxes. It is easy to get confused about what can and cannot be deducted, which can either result in missing out on tax relief, or filing an incorrect return and being penalised.

To qualify as a deduction the expense must be have been wholly, exclusively and necessarily for the purpose of employment – which sounds broad, but in reality is quite narrow. Additionally you must be able to prove the expense occurred - keep those receipts!

Items that may count as deductions:

• Mileage expenses
• Travel expenses
• Clothing, laundry and dry-cleaning expenses
• Home office – particularly given lockdown / working from home this year.
• Subscriptions to relevant professional bodies – assuming they have not been refunded by your employer.
• Pension contributions
• Gifts aid and charitable donations

Keep comprehensive notes

It seems odd in this on-line world, but keep a note of where each item you enter has come from. It may seem obvious now, but if HMRC decides to look into it some years down the line and there are discrepancies between your entry and what's been submitted it is going to be difficult without knowing how everything was acquired. Hopefully following these guidelines will make doing taxes less overwhelming!

Does doing your own tax returns get you down?

If you dread doing your tax return, then help is at hand. With us on the job, we'll make sure everything is done right so you can keep more of what you earn. We'll also help with any questions or concerns throughout the whole process. Let us take care of all those headaches for you!

You can either call us on 07830 307066 to find out more about our tax return service