Tax expert: Time and care needed for tax returns

Date: 6th August 2008

Sole traders filling in their own tax returns should make sure they keep detailed records to make the process as simple as possible, an industry expert has suggested.

The Times explained that many accountants believed that the keys to successfully filing self assessment tax returns were to allow plenty of time for the process and make sure all records were in order.

In an interview with the paper, Tony Levene, author of the Which? Tax Handbook, explained that the requirements for completing a self assessment tax return differed for people who were employed and sole traders.

"If you are self-employed or have rental income, you’ll need copies of your accounts and expenses," he explained to the paper.

"You'll also need your bank statements if you pay interest on your bank account and details of any income from investments and savings."

According to the paper, the most common mistakes on tax returns involve "basic numerical errors such as putting a decimal point in the wrong place".

It suggested that hiring an accountant could help ensure the forms are filled in correctly.