The Tax Return
Whether self employed or employed, this unpopular annual event is very often left to the last minute. Some might want to delay paying any additional tax due until absolutely necessary, while others claim to have simply had more interesting things to do since April last year!
Whether you have been sent a return by HMRC to complete or not, you may well be legally obliged to complete one. Late filing now incurs a £100 fine, if it still hasn’t been filed 3 months later a further fine of £10 per day up to a maximum of £900 will also be due. Since 2010/1011, even if there is no tax to pay and a return is late, the £100 fine applies anyway!
Who needs to complete a tax return
If you think you fit any of the categories below, then either feel free to get in touch with us or directly with HMRC to plan how to tackle a tax return:
- Self-employed people (including members of a partnership)
- Company directors (unless you’re a director of a non-profit organisation, for example a charity, and don’t receive any payments or benefits)
- Anyone who has Capital Gains Tax to pay, for example you’ve sold, given away or otherwise disposed of an asset such as a holiday home or shares
- People who receive rent or income from land or property in the UK or other untaxed income (but if you’re an employee or pensioner see the section below)
- Employees and pensioners with complex tax affairs (see the section below**)
- Ministers of religion (any faith)
- Lloyds Underwriters
- People with taxable foreign income, even if they aren’t normally resident in the UK (this includes non-resident landlords)
- Anyone who receives annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income
- Trustees and personal representatives (including people who manage the tax affairs of deceased persons)
- Trustees of certain pension schemes
- Those who have been asked to do so by HMRC
- Have an annual income of £100,000 or more
- Your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
- Have annual income from savings or investments or rental income of £10,000 or more (before tax)
- Claim against tax for expenses or professional subscriptions of £2,500 or more
- Have untaxed income of £2,500 or more
- Owe tax at the end of the year that can’t be collected through a change to your PAYE tax code for the following year
- Have sold, given away or otherwise disposed of an asset, for example a property that’s not your main home or shares and have Capital Gains Tax to pay
We offer advice around tax planning using investments and Trusts.
We have also teamed up with a City based firm of Chartered Accountants to complete tax returns for our clients at a competitive rate and work closely with them to ensure our clients affairs are recorded correctly.