Struggle with tax return? One in three taxpayers find it challenging too

In accordance to the latest research 1 in 3 taxpayers struggle with self-assessment tax returns. Most people are afraid of making errors while a little more than half of them do not know when the deadline for submission is.

Standard Life study also showed that 30% of grown-ups had no faith in their ability to fill in a self-assessment form correctly, whereas 17% doubted they could complete it without errors.

However, there were 35% who confidently filled in tax self-assessment forms.

Moreover, 41% of taxpayers earning 40% or higher rate taxes have no idea that they may be required to file for self-assessment even if they are on PAYE and child benefit has been claimed. As soon as taxpayers income reach £50k, they must pay additional tax, called the higher income child benefit charge, if they receive child benefit.

According to Dean Butler, the retail direct MD at Standard Life, failure to submit the tax return on self-assessment can result in losing out on valuable relief from tax allowable on pension contributions. When contributing towards pension by any individual, there is a 20 percent tax relief added automatically.

Nonetheless,a higher rate taxpayer must recover 20% tax relief due to him/her, which can be received through tax rebate, change of tax code (meaning you will pay less taxes in the following year) or a decrease in your tax liability for the current year.

Another good reason to be on top of your tax returns if you are a higher earner is that you might have exceeded your annual allowance and it is your duty to disclose it. Most people have an annual allowance set at £60,000.

Late submissions of self-assessment also attract penalties after three months starting from £100. Additionally, every day beyond this attracts a £10 charge up to £900 in total. Late payment interest is also charged.