At this rate they will be paying the fines

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Ballet Shoes Center.com

Published: July 27, 2010

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At this rate they will be paying the fines.”One of the biggest favours a person can do for himself is to collect tax- orientated documents in a safe place the moment they arrive through the year. More of our clients this year have failed to provide us with the data. This gives us something we can put into our computer and come up with a tax figure to bill them with, and we won’t charge interest as of 31 January. Failing to submit a tax sum in the form means we have no choice but charge interest as of 31 January.”Tim Smith, of Devon accountants HM Williams says: “This is the third year of self-assessment and there has been gradual slippage and complacency.

They should receive a tax figure six weeks later, in plenty of time for the payment deadline of 31 January.”We encourage people to work out the tax payable in the tax calculation section as accurately as they can. People make errors because they don’t read the questions properly. And a surprising number of people don’t take a copy of their tax return before sending it It is vital this is done each year. Apart from anything else it can make next year’s tax return task so much easier. One of the best ways to ensure you remember to sign is to compare this return and last year’s.”A spokesman for the Revenue says: “There is a group that forget to put in the married couple’s allowance and the additional personal allowance (for non-marrieds). There’s also a tendency to put net and gross amounts down in the wrong boxes.” The spokesman said taxpayers who want it to work out the sum owed (or possibly are owed), in the next financial year (starting April) get the return in by the end of September. But for those who cut it fine there are some key points that you may have forgotten.John Whiting, tax partner of big accountants PricewaterhouseCooper says: “It’s helpful to think of the form as an exam paper which you want to get 100 per cent right.

Filling in a return involves a learning curve and it could take several days to collect all the bits of relevant paper.Most of those who have completed their return since 1998, when the first self assessment deadline came in, will probably have done it by now, or their accountants will have. Failing to meet the deadline automatically triggers a £100 penalty notice with six months to pay. If you don’t pay the tax you owe by 31 January interest starts to accrue at 7.5 per cent. At the end of February you will be charged 5 per cent of the total.If you haven’t completed a tax return, do yourself a favour and get on with it now. This means that at the latest you should post it first class by Thursday 27 January to allow for a day’s slippage in the post.But the Inland Revenue says that if returns are in its morning post bag as of Tuesday 1 February, it will accept them as on time.The fines are not insignificant. The spectre of Hector, the Inland Revenue’s plump tax collector now looms, threatening fines and interest charges for those who are too late sending in their self-assessment tax return.

The spectre of Hector, the Inland Revenue’s plump tax collector now looms, threatening fines and interest charges for those who are too late sending in their self-assessment tax return.
You have only until Monday, 31 January to ensure Hector receives your correct and completed tax return for the tax year April 1998-1999. That way you can have your cake and eat in retirement.”So look for a wide choice of good performing funds, whether they be insurance funds, run like unit trusts, unit trusts or investment trusts And then save as much as you can.. “In your 50s, you cannot afford to take high risks with your core pension savings,” says Mr Kohn. “You should take a more conservative approach, reducing the problems if there are market downturns. Pension contributions attract tax relief at your highest rate of tax.

If a higher rate taxpayer, your premiums will receive 40 per cent relief. So add up all this up, and you could find that you are paying less than 50 per cent for their underlying portfolio.As you near retirement, look at low-risk funds to conserve the profits you have made. This is because most investment trusts are trading on discounts of 10 per cent or more In addition, they borrow money to invest, called gearing. “Twenty-five-year-olds should not be looking at investing in a cash fund.


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