Many people dread the prospect of completing their annual self assessment form by hand, to the extent that they are happy to spend their hard earned money outsourcing the whole job to their accountant or tax advisor.
Although this suits many people, there is a third option in the form of using dedicated self assessment software to help cut through the paperwork. This is often far cheaper than calling in the professionals, and decent software will allow you to complete your form in a fraction of the time it would take you to do the same job by hand.
- It ‘intelligently’ selects pages of the form relevant to you, based on data you enter about yourself
- By calculating the amount of tax you will need to pay
- By allowing you to either print and post your completed form, or better still,
- File By Internet (FBI) via the Government Gateway (the government’s centre for online services) - by far the quickest way of submitting your completed form.
The best place to investigate the different options available to you is at the Inland Revenue’s directory of accredited software
Avoid software that does not appear on this list, as there is no guarantee that it will do what it is supposed to do.
If you use non-accredited software and end up filing gibberish, don’t expect sympathy from the Inland Revenue - it’s your responsibility to ensure you’re using an approved program. Hunt for bargains on the web by all means, but look out for out-of-date software - it’s surprisingly common.
The directory is divided into three sections, namely, Individuals (SA100), Partnerships (SA800) and Trusts (SA900).
For the majority of self-employed people, the individuals section will be appropriate, although if you’re in any doubt, a quick call to the IR’s Self Assessment help-desk (0845 9000 444) should put you the right track.
In addition to the SA100, self-employed people are also required to complete a supplement called SA103, where details about their business are entered.
Depending on your personal circumstances (e.g. shares or property that you own) you may also need to complete additional supplements. Self Assessment programs will quickly decide which (if any) additional supplements are applicable to you by pro-actively ‘interviewing’ you. This means that you avoid wasting time on sections of the form that are irrelevant - one of the biggest potential pitfalls of completing a tax return by hand.
So which of the programs listed are right for you? First of all, ignore any ‘agents only’ programs - these are mostly ‘bureau’ programs designed for accountants and tax advisors. Once you’ve eliminated these, you’ll be left with a list of commercial programs (and a government freebie) to work through, before deciding what’s right for you.
Although publishers’ websites are a good place to start, calling them directly may provide you with answers more quickly. Here are a few basic questions you might find useful to ask -
- Will you software complete every section and supplement of a self assessment form?
- What after-sale support do you offer and how much will this cost? Is there an upper limit to the amount of questions that can be asked?
- How many separate tax returns can a single copy of your program be used to complete? This is useful to know if more than one person in your family or business is required to complete a Self Assessment form e.g. a husband and wife partnership.
- What are your program’s minimum system requirements?
If you register with the Inland revenue for online services at: you can use their Internet based product: ‘Online Tax Return - Self Assessment’.
You will also have access to the Online Services Helpdesk - 0845 605599, which is open 8.00 A.M. and 10 P.M. (weekdays) and 10.00 A.M. - 6.00 P.M. (weekends and most bank holidays) - handy if you don’t work 9-5.
TaxCalc is one of the best known commercial programs and its publisher, Intuit, offer a money back guarantee if you fail to complete your tax return in under 30 minutes. TaxCalc costs £24.95. Tel. 0845 6062161 www.taxcalc.com
Legatio Freefile is a Portable Document File (PDF) based product that allows P.C. and Mac users to submit completed forms to its central computer, from where they are converted into the data format required by the Inland revenue. This means that in busy times, when the Government Gateway is ‘engaged’, they can poll on your behalf - useful if you’re not always near your computer. The service is free if you file online and £5.00 if you choose to print your completed form. Go to www.freefile.co.uk
Finally, many publishers offer free trial versions of their software. Yes, this can be useful but try not to get too bogged down comparing different programs. Unlike accountancy or bookkeeping programs, self assessment software is something you’ll use just once a year - comparing every trial available could well take you more time than it will to actually complete your tax-return!
