Are you ready?
Most UK tax payers won’t ever have to complete a tax return under the Self-Assessment system as they pay the correct amount of tax through Pay As You Earn (PAYE) via their employer. However many of us will have to complete a return to allow HMRC to calculate how much tax we owe them (or sometimes they might owe us).
Why might I need to complete a return?
If HMRC are happy that you are paying the right amount of tax through PAYE then you should not be asked for a Self-Assessment tax return. However you may have to complete a return if you:
- you were self-employed - you can deduct allowable expenses
- you got £2,500 or more in untaxed income, eg. from renting out a property or savings and investments
- your savings or investment income was £10,000 or more before tax
- you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
- you were a company director - unless it was for a non-profit organisation (eg. a charity) and you didn’t get any pay or benefits, like a company car
- your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
- you had income from abroad that you needed to pay tax on
- you lived abroad and had a UK income
- you got dividends from shares and you’re a higher or additional rate taxpayer
- your income was over £100,000
- you were a trustee of a trust or registered pension scheme
What if I don’t receive a return?
It is your personal responsibility to ensure that you are paying tax on your income. If you have received income on which you have not paid tax through PAYE, it’s vital that you inform HMRC. You need to do this at the latest before October 6th of the year following the tax year in which the income arose.
If you do not do this and submit a return late as a result, then you may have to pay a penalty and interest on any tax paid late.
What if I don’t think I should be completing a return?
Never just ignore the return – if you do so, then you will automatically be fined for not submitting it. If you don’t think you need to complete the return, then contact HMRC on the number on the form. They will be able to tell you why they think you need to submit it or if they agree that you don’t need to submit, they will confirm in writing.
Completing the return
There are two types of tax return:
If you wish to complete the paper return then you will need to ensure that it is with HMRC by 31st October following the end of the tax year. If you do so, then HMRC will guarantee to calculate any liability in time for the payment date of 31st January. If you don’t submit the return in time, then HMRC will not guarantee that they will be able to make the calculation in time for the 31st January deadline and late payment will incur a penalty.
You (or your representative) can submit your tax return online before 31st January in time for the payment deadline.
Why should I use a tax return service?
Completing a tax return is time consuming and can be very complicated so it is not surprising that over one million people are fined for late filing of theirs every year.
One Click Accountant offer an all inclusive tax return service which will save you the worry and hassle of competing your tax return. For only £125 (plus VAT) our service will:
- Deal with all of your tax affairs, including self employment income*
- Take into account employment income, pensions and State benefits
- Include Capital Gains
- Cover rental income for one property**
- Calculate your tax position and complete the return
- Provide you with a copy and explanatory notes
- Submit the return online to HMRC
- Deal with any correspondence from HMRC on your behalf
All you need to do is complete the online submission form and a member of our team will contact you to ensure that we have all the information we need.
Provided you are able to provide this information before 20th January, we will be able to complete your 2014/2015 return in time for the 31st January deadline.
Some sources to learn more
*Self employed income from prepared accounts – we can produce accounts for an additional fee
**If you have rental income for more than one property, we will agree a fee for completing this section of your return.
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