Money
Tax and benefits
Self-assessment made easier
Simpler self-assessment tax forms will be landing on doormats in the coming months following a revamp from HM Revenue & Customs, writes Holly Thomas
About nine million people have to submit tax returns each year, including the self-employed and higher-rate taxpayers.
Yet many who do not have an accountant struggle with the lengthy forms.
Every year about 800,000 people miss the final deadline, many cases of which are where forms are incorrectly filled out, and need to be returned - incurring fines of £100.
The new forms will have fewer questions, simpler language and a new layout.
Firstly, the Revenue has changed the order of the questions. Your main source of income is now stated at the front of the return, rather than the end, ensuring workers answer questions most relevant to them first.
There is also a new short, self-employment section - a two-page form with fewer boxes to complete is being introduced for smaller, straight forward businesses with an annual turnover below £64,000.
The new paper form will be sent to people who have not filed online before, or who do not qualify for the short version introduced in 2005 for those with simple financial affairs.
A redesigned version of the online return is also now available. Online notices will be sent a reminder to file, rather than the new paper form.
The limit for completing simpler, abbreviated accounts information has been doubled from £15,000 to £30,000.
Chas Roy-Chowdhury of the Association of Chartered Certified Accountants said it was about time something was done about the forms.
"It is a good move by the Revenue. However, there are still many complexities and so people must leave enough time to complete the forms correctly.
"Mistakes made only slow the whole process down - and can cause fines."
Next year the deadlines are changing. Paper returns will have to be with the Revenue by October 31. If you file online you still have until January 31, 2009 to submit your returns.
The forms have been designed after a two-year pilot involving 7,000 self-assessment tax payers.
This is the first major revamp since the previous version was introduced in 1997, although a short version was introduced in 2005 for taxpayers with particularly simple affairs.
For help, visit the self assessment pages at www.hmrc.gov.uk/sa or call the self-assessment helpline on 0845 9000 444.
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
