You may be starting to think about whether you need to complete a Tax Return this year? To help with this we have summarised the main points below.
Generally those individuals who receive a source of income, that is not taxed at source e.g via PAYE, should be considering whether they need to file a self assessment return i.e. tax return, to declare this income. The rules however are not that simple. To help HM Revenue and Customs (HMRC) have complied a list of the types of income which should be declared on a Tax Return. These are listed below:
• If you are self-employed as a ‘sole trader’ and earned more than £1,000
• a partner in a business partnership:
• money from renting out a property
• tips and commission
• income from savings, investments and dividends
• foreign income
HMRC will send a notice to file a tax return to everyone in the Self-Assessment system in April / May each year. If you are not in the self assessment system and you should be, then you need to notify HMRC of your requirement to file a return. The deadline for notifying HMRC is 5 October following the end of the tax year and there may be penalties if this deadline is missed.
Anyone who receives a tax return from HMRC is legally obliged to complete and submit it. The deadline is 31 October following the tax year if filing a paper return and 31 January if you file the return on line. If the deadline is missed and the return is submitted late, you’ll be liable to pay a penalty. You may also have to pay interest and surcharges on any tax you owe.
If you are unsure how to notify HMRC of your requirement to complete a tax return , or if you are unsure how to complete the Tax Return itself, get in touch with us and we can help you with the process.