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The self-assessment tax deadline is looming. If past years are any guide around 800,000 people will fail to file, inviting an automatic £100 penalty plus interest if payments are still outstanding at the end of February. But some people will have left it until the last minute, and may find it is not as straightforward as they hoped.
We asked HM Revenue & Customs (HMRC) for answers to the most posed questions.
What happens if I can't remember my pin?
Replacement pins are sent out by first-class post – go to HMRC's Understanding and using self assessment online and click on "If you have lost your User ID or password". HMRC says: "The reason we send out a replacement pin in the post is that it is a current security feature to ensure the relevant information is being delivered to the correct person."
What happens if my new pin has not arrived?
HMRC seems to have adopted an easier stance on this than many tax experts expected. It says: "It not too late to register and pay on time even if the return is filed late. The taxpayer will get a penalty notice, but we would treat a late return appeal (on reasonable excuse grounds) sympathetically if the taxpayer shows he registered before the 31st and filed his return as soon as he could after receiving his pin. If a customer owes no tax on the 31 January the penalty will be nil." The payment date is more vital than the filing date.
I am filling in my online return but I don't understand a question?
Phone the helpline. People often call because they are uncertain of the meaning of a question on the tax return. HMRC believes "these are caused by unfamiliarity with completing the self assessment return rather than a particularly badly worded question as there are no specific questions that generate these calls". The helpline is on 0845 60 55 999 – consumer website website saynoto0870 lists 0161 931 9070 as a landline alternative. The Online Services Helpdesk can be reached on 01274 894994.
There are pages that appear in my paper return that I cannot find online. What can I do?
The online tax return may not cover your particular circumstances. There is detailed information on what it covers on HMRC's website.
You will find the following pages cannot be filled online: Minister of Religion (SA102M); Lloyd's underwriters (SA103L); Trusts etc. (SA107); Non residence (SA109); Partnership return and supplementary pages (SA800); and Trust and Estate return and supplementary pages (SA900).
Your return may still be filed online, but you need to use commercial software such as TaxCalc – HMRC has a list of available software suppliers.
I was not offered certain return pages I need. Why?
HMRC says: "It is likely when you answered the questions under the personal details section, which helps tailor the rest of the return, you have missed out or answered a question incorrectly. This then results in a series of questions, for example on self-employment, not being presented. This can be corrected by going back to the start and correcting any mistakes so the return is then updated accordingly."
More information on tailoring your return can be found on HMRC's demonstration page or by downloading its step-by-step guide.
I keep being told I have made an error but I can't work out what mistake I have made.
The most common reason for an error message is that you have not completed a box, leaving it blank rather than inserting a "0". Check the questions on that page again and where your answer in zero and you have ignored the box and left it blank, instead insert a "0".
I am retired. Do I include the lump sum from my company pension?
When you reach state pension age you no longer pay national insurance contributions, but you don't automatically stop paying income tax. If your taxable income, including your state pension, is more than your tax-free allowances you are still a taxpayer. The lump sum is normally tax free.
What interest from bank accounts should I include?
Banks and building societies are required by law to deduct income tax at 20% from any interest they pay you. If you are not due to pay any tax you can register your bank or building society account to receive your interest without any tax taken off. If you are only due to pay a small amount of tax – you fall within the 10% tax bracket – you may be able to claim back some of the tax taken off. There is more information on HMRC's website.
Do you have any tips to help me complete my return?
Gather together all your financial information for the tax year, for example your P60s, relevant accounts information, expenditure receipts, details of investment income etc. Set aside adequate time to complete the form, if possible, in a place where you can concentrate and not be constantly disturbed. But remember you can save your form and return to it at a convenient time if you want to take a break.
The online help desk is on 0845 60 55 999/ 0161 9319070, and the self-assessment helpline is on 0845 9000 444/ 0161 931 9070. HMRC says: "Be patient if you have to queue, we will answer your call as soon as we can. These numbers are available seven days a week, 8am to 8pm."
Online assistance can be found within the online tax return – just click on the green question mark next to the appropriate field. This may answer your query immediately.
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