Personal Tax Returns

Personal Tax Returns

 

A Personal Tax Return is the standard method by which HMRC check that you have paid the correct income tax, collect any extra tax or pay refunds.

In this country not everyone gets a Return to complete, as most people pay their taxes exclusively via the payroll.  If, however, you are asked to complete one then there are penalties for not doing so on time – starting at £100.

Anyone with more complicated tax affairs will expect to get a Tax Return to complete

E.g.

* The Self Employed

* Landlords

* Higher rate tax payers with savings income

* Parents earning over £50,000

* Company Directors

In order to know to whom to send a Tax Return, HMRC have put the obligation on the tax payer to tell him when certain events occur.

E.g.

  • * Start Self Employment

* Become a company director

* Start receiving income as a landlord

* Start receiving taxable foreign income in excess of £300

* Start receiving an annual income from a trust fund

* Annual income exceeds £100,000

* Receive irregular untaxed income

* Income exceeds £50,000 and you have Child Benefit to repay

Another reason why you need to complete a Return may be that you are a higher rate tax payer and receive sizable levels of investment income such as dividends.

You can use the HMRC useful tool for checking if you need to complete a Tax Return at
www.gov.uk/check-if-you-need-a-tax-return

Occasionally HMRC will sort out small under or overpayments with a simple assessment but it is always the individual tax payer’s responsibility to get the tax right.

The deadline for advising HMRC that you need to prepare a Tax Return is the 5th October 2014 for the 2013/14 tax year or you may face a penalty.

All information for the preparation of your Return should be with you by mid July, and you need to keep this for 3 years whether or not you receive a Return to complete (6 years for anyone in business).

Paper Returns are due for submission by 31st October 2014 but may be submitted electronically right up to 31st January 2015 before fines are levied.

We are happy to assist with the preparation of Personal Tax Returns but this service is not a part of our Company services package and costs will depend on the level of work required.

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