With the deadline for 17/18 tax returns looming we thought it was timely to give you a quick reminder about your obligations and what to do next. Many people find the area of self-assessment a minefield and completing a tax return can seem incredibly daunting when you are new to the process. HMRC recently revealed what the most commonly-asked self-assessment and tax returns questions are, so let’s take a quick look at the top three…
Who needs to complete a tax return?
You need to fill in and send a tax return if you were self-employed or received more than £2,500 in untaxed income during the past year. This income may have come from things like renting out accommodation or tips you received at work. If your income from savings or investments or dividends from shares was £10,000 or more before tax, you will need to complete a tax return. You are also obliged to complete one if you made a profit from selling chargeable assets like second homes and shares and need to pay Capital Gains Tax. Company directors also need to complete returns unless they ran a non-profit organisation and didn’t receive pay or benefits.
In addition, you will need to complete a tax return if you received taxable income from abroad, if you or your partner earned over £50,000 and one of you claimed Child Benefit, if your taxable income was more than £100,000 or you were a trustee of a registered pension scheme or a trustee of a trust during the tax year. If you received a P800 or your state pension exceeded your personal allowance and was your only source of income, you may also need to fill in a tax return.
How much tax do I owe?
When you complete your return online, it will calculate how much tax and Class 4 National Insurance contributions you need to pay. You can register to send a tax return on gov.co.uk.
When do I need to complete my tax return by?
You need to complete your tax return for the previous tax year by 31st January. This means you need to act quickly if you haven’t already completed your tax return for 2017/18. If you fail to meet the deadline, you will face a fine of up to £150. You can also face fines and interest if you don’t pay your tax on time.
Getting help with completing your tax return
If you are confused about self-assessment or need help with completing a tax return for any other reason, contact Morgan Reach today. We have many years of self-assessment experience behind us and can be counted on to help you complete your return accurately whilst helping you avoid substantial penalties.
Contact Morgan Reach today
We may be able to reduce your bill if you fear you are paying too much tax and can use our considerable experience to help you benefit from approved tax planning strategies. Get in touch with us today by completing the form on our website or by sending an email to email@example.com. Don’t hesitate to get in touch if you are seeking assistance with self-assessment. We can provide the clarity you are seeking.