The deadline of 31 January is fast approaching and you may be finding yourself pressurised by how little time is left to submit your self assessment tax return.
Or you may well be wondering whether you actually need to complete a return at all.
If you have been sent a tax return or a notice to file, then you will need to take action, even if you don’t think you meet the criteria.
So, who needs to submit a tax return?
Notices to file are generally sent to individuals who have complex tax affairs, however you are also required to submit a tax return if you receive:
- an annual income over £100,000
- income from self-employment or a partnership business
- any other income, for example rental income from land or property
- income from overseas
- any other income which is received gross (without the tax deducted)
If you are a director of a limited company or if your personal financial affairs are complex, you will need to complete and file a full tax return.
What are the common reasons for needing to submit a return?
Some of the most common reasons for needing to complete a tax return are if:
- you have recently started your own company
- you are self-employed (a return is required even if you make a loss)
- you have expenses of over £2500 to claim
- you or your partner continues to receive the Child Benefit and your income is over £50,000
- you need to pay Capital Gains Tax
If you currently receive income from savings, investment or property, you will need to submit a return if the values are equal to or greater than those shown below:
- taxed savings and investments of more than £10,000
- untaxed savings and investments of more than £2,500
- income from property (before deducting allowable expenses) of more than £10,000
- income from property (after deducting allowable expenses) of more than £2,500
Finally, if you don’t pay tax through a PAYE code, you will need to complete a self assessment tax return if all of the following conditions apply:
- your total income is greater than your total allowances and reliefs
- you have income to declare (for example from savings, trusts or overseas; or you receive income from other sources such as rental income from land or property)
- you have tax to pay on this income
The HMRC has a range of Self Assessment forms and detailed guidance notes available.
Remember, any returns need to be submitted online as the deadline for submitting a paper form has already passed (this was 31 October 2013).
If you have received a notice, but don’t think you meet the criteria above, don’t just ignore it. An automatic fixed penalty will be charged if you miss the deadline of 31 January 2014.
If you do need to submit a self assessment tax return, then refer to our earlier blog Top Tips on Filing Your Tax Return to see how you can maximise your tax savings.
We can help with your Self Assessment Tax Return
If it’s your first time submitting a self assessment tax return, or you have been through the process many times, we can provide timely, effective advice to save you money.
Let us take away your stress of filing tax returns and help you to maximise your tax savings.
Contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.
This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.