The top ten Tax Return mistakes

6 April 2009

"Self assessment returns must be in by 31 January – or taxpayers face a £100 penalty, "says Barry Fine FCA, Partner at Alexander Bursk.

When processing tax returns, HM Revenue & Customs has found the ten most common mistakes are:

1. A 'yes' tick has been entered in one of the questions 1 to 9 on page 2 of the tax return but the supplementary page has not been forwarded with the tax return.
2. Failure to complete the self-employed pages, particularly on page SEF4 from box 64 onwards.
3. Detailing information on separate schedules instead of including the information on the return.
4. Entering manuscript notes on the return i.e. "per accounts" and/or "information to follow" instead of entering actual figures on the form.
5. Failure to complete a separate supplementary page for each individual employment.
6. Entering the net figure of employee personal pension premiums instead of the gross.
7. Entering the figure of capital expenditure in Box 48 of the Self Employment pages instead of the capital allowances (i.e. claiming excessive relief).
8. Failure to enter bank account details on TR5 of the core return where a repayment is due.  The Revenue will assume you wish to leave the overpaid amount on your record, to be set against future liabilities – you have the right to choose.
9. Entering your pay in box 1 of the employment schedule but not entering any tax deducted in box 2.
   
   And most importantly . . . . .
   
10. If you fail to sign a paper return, it will be rejected immediately.