How easy is it to complete a tax return online?

Question

I've got 6 months worth of invoices and receipts. Is it worth me doing this myself to save money on accountant's fees?

Answer 1

Why not?  Self assessment was intended to be just that.  HMRC publishes a lot of help sheets on their web site, and their telephone help line is very helpful.

Answer 2

Get a cheap financial package such as Microsoft money and record your income and outgoings on that. Limit the categories you save entries into to those on the HM On-line tax return (there were only 5 categories last year so it's simple to do.)

I then use Taxcalc which is very easy to transfer figure to from the software mentioned above. Taxcalc guides you through the tax return and checks it for you. Once you are happy with the result Taxcalc lets you file the form via the HM Revenue website.

So you need some cheap financial software which you can use over and over. Microsoft Money is about £50 as a one off payment. Then Taxcalc costs about £35 per year. This is a fraction of the cost of an accountant and you have total control over your accounts.

Go of it. BUT one word of warning, don't leave it until the last minute, it's easy to leave things until too late and end up panicking. Personally I prefer to have everything done by November of the year.

Answer 3

It's not too bad. Make sure you have all the info. you need before you start. Add up the receipts etc. for each box that they need to be entered in. I found it easier to complete a paper return in pencil and then transfer  the  figures over. Once it's complete, print a copy off and note what goes where for next  time!

Answer 4

Good advice above.

Just to add a further point; if you're gonna do your own tax return online please remember to keep some record of how you calculated the figures that you put onj the tax return.

I deal with no end of tax investigations where an individual has completed their own tax return but it becomes impossible to reconstruct what has been put in which heading.

Simple method:

Seperate all receipts into categories of expenses eg ; motor expenses, purchases for resale, telephone, stationery etc.

Add each pile up, staple them together and write the total on the front invoice.

If this is your first tax return I'd do a little snooping around on the HM revenue and Customs website - look at sections on business mileage and capital allowances claims.  You dont want to miss out on any expense you may be able to claim