Record keeping needed for your tax return

The self-assessment filing deadline is 31 January, but collecting information at the last minute can turn preparation of the tax return into an unnecessarily stressful exercise.

Now is a good time to check that you have the records needed.

Depending upon your circumstances, these could include details of employment income and benefits, pension income, bank interest, dividends, property income and expenses, pension contributions and Gift Aid donations.

You should also identify any disposals of shares, property or other investments that may need to be reported for Capital Gains Tax purposes.

Business owners and landlords should ensure that their accounting records are complete. Missing invoices, unexplained bank transactions and incomplete mileage records become increasingly difficult to reconstruct as time passes.

Remember that HMRC receives growing amounts of information directly from third parties. Employers, banks and other organisations may report information that can subsequently be compared with figures shown on a tax return.

Do not assume, however, that because HMRC may already hold information it does not need to appear on your return. The taxpayer remains responsible for submitting an accurate return.

Providing information to your accountant early has another advantage. It gives more time to calculate the liability, consider whether payments on account should be changed and identify any planning opportunities.

January is the filing deadline, not the recommended starting date.