The easy mistakes to avoid on your tax return as Martin Lewis issues warning

Get it right to have HMRC off your mind for another year

The deadline for submitting tax returns is fast approaching.

While those sending their returns to HMRC on paper have been able to relax since Halloween night, the bulk of digital filers are doomed to spend the days before 31 January with a cloud of calculations hanging over their heads.

Punishments for those who put it off too long can be crushing. Even those who need to file returns but have no tax to pay must submit theirs in time or face an initial £100 fine.

Fines are also handed out to those who file incorrect information, with a risk of prison in the most egregious instances.

During The Martin Lewis Money Show on Tuesday, the latest episode of its 12th season, The Money Saving Expert urged Brits to not leave the form until the last minute because it could get delayed in HMRC backlog.

The deadline to submit the tax return for those who are self-employed or high earners is January 31 at 11.59pm.

Here, The Independent has covered the unfortunate mistakes taxpayers can easily make.

Remember the Child Benefit Charge

Taxpayers earning more than £50,000 per year who still receive Child Benefit will need to pay some or all of it back in tax – whether the benefit is given to themselves or a spouse.

They should be aware it needs to be included on a tax return as “High Income Child Benefit Charge”.

Register with HMRC in good time

HMRC must be informed well ahead of the deadline if you are self-employed or need to complete a self-assessment tax return in order to send your UTR (Unique Taxpayer Reference) in time.

It can take several weeks to receive your UTR from HMRC, so if you don’t have one, but will need to complete a tax return, apply online now.

Digital returns must be submitted and payments must be made by midnight on 31 January (PA)

Filing late gives HMRC more time to make an inquiry

HMRC has the right to open an enquiry into any return within 12 months of it being filed. However, for returns filed after the 31 January deadline, HMRC has an extended deadline of one year and three months after the date of filing.

In a tax enquiry, HMRC will check in detail that the information on a tax return is correct and complete.

Be careful when declaring state pension

Those in receipt of a state pension must remember to include not the amount they actually receive in the tax year but their pension entitlement. This is 52 times the weekly amount.

Include/exclude expenses

There are complex rules governing which expenses you can deduct, and there are costly penalties for incorrect claims.

It is not HMRC’s responsibility to check through all your expenses, to work out which ones are valid and which are not. You need to be aware of the rules, and apply them to your tax return. HMRC lists some of the valid tax-deductible expenses here.

HMRC brings fines against late filers (Getty)

Enclose supplementary pages

For additional income not covered by the main tax return, you will need to include supplementary pages. Additional information which may be relevant includes:

• Lump sums or compensation payments from your employer, or foreign earnings not taxable in the UK
• Taxable lump sums from overseas pension schemes
• Certain employment deductions
• A claim to age-related Married Couple’s Allowance
• Other tax reliefs not found in the main part of your tax return
• Stock dividends, non-qualifying distributions or close company loans written-off
• Interest from gilts and other bonds and accrued income profits
• Life insurance gains
• Loss relief claims
• Income from property

Signature and date

Paper returns must be signed and dated before submission. A photocopy will not be accepted. This is a simple mistake, but people do forget to sign their tax returns.

Check then check again

Looking over the figures repeatedly might just lead to a taxpayer noticing that their calculations do not add up.

Perhaps they are due to pay lots more tax this year, despite their income and outgoings being the same as last year.

Any deliberate wrongdoing can result in prosecution.