Preparation of Tax Returns

25 Steps to completing a tax return form:

This sheet is designed to give our clients an idea of the steps we have to consider when filling in a self assessment return form

1. Establish that a return is required - either repayment form or Self Assessment return
2. Ensure that the Inland Revenue hold a valid agent authority form 64-8
3. Review databases for any changes of address, tax reference, tax office etc and ensure tax software updated
4. Review file notes from previous year for information relating to the current tax return
5. Complete the relevant pages of the tax return from information supplied so far.
6. Complete dividend schedules and note any changes to shareholdings.
7. Complete interest received schedules and note any changes to accounts etc.
8. Complete income from property schedules - income and expenses
9. Check PAYE code and tax statements for underpayments from prior years being collected via PAYE
10. Enter self employment details from accounts and calculate maximum capital allowances available
11. Review disposals of assets to see if capital gains pages need completion
12. Make enquiries with regard to missing information, either direct or using third party sources and enter all missing information on our computer system
13. Calculate liability - in light of position review capital allowances claim to see if it is beneficial for client to reduce claim
14. Check to ensure correct tax allowances have been given
15. Consider whether farmers averaging is beneficial
16. Consider whether pension premium "carry back" may be beneficial
17. Consider whether Gift Aid "carry back" may be beneficial
18. Ensure payments on account agree with the tax statements and the amounts actually paid
19. Print tax return form, computations and any relevant schedules required
20. Make note on file of any other relevant information for next years tax return.
21. Send letter to client requesting signature on return and giving details of our estimate of the tax position for the year
22. Recommend tax planning or suggest tax saving points in letter to client or note for a meeting with client
23. When return received from client confirm that form is correctly signed and dated and forward to Inland Revenue
24. Check repayment when received to ensure correct
25. Check statement when received from Inland Revenue to ensure that they have agreed our computations.