If your tax affiars are straightforward and you pay tax through PAYE (Pay as You Earn) you will not need to complete a tax return. However if your tax affairs are complicated and/or you receive income from many sources, then you will need to complete a tax return.
These are the most common groups who are asked by HMRC to complete a tax return:
- Self-employed
- Company directors
- Income from savings and investments that are £10,000 or above
- Income from rental (after expenses) of £2,500 or above
- Income is over£100,000 in a tax year
- You need to pay capital gains tax (CGT). This following link explains CGT . It talks about CGT on the sale of shares. The principles are the same whether you are selling shares or any other assets https://www.southsideaccountants.co.uk/2010/01/17/what-is-the-tax-position-if-listed-company-shares-sold-at-a-loss/
- You want to claim certain expenses. For example as an employee you want to claim professional subscriptions of £2,500 or more.
- You live or work abroad
The onus is on you to complete your tax return. If you are not sure whether you need to complete a tax return please contact HMRC or ask your accountant.
Do I need an Accountant to complete a tax return?
You do not need an accountant to complete a tax return. However, to ensure that you pay the minimum amount of tax within the law, it would be best to employ an accountant. https://www.southsideaccountants.co.uk/2009/11/17/check-your-accountant-is-qualified/
What is the deadline for completing tax returns?
- There is a deadline of 31/10 if you complete a paper tax return.
- If you complete a tax return online the deadline is 31/1.
What if I don’t complete a tax return, when I am required?
You will get an automatic penalty of £100. After several reminders from HMRC, you will get a big fine as high as twice your tax bill plus interest.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
