Do you need to file a tax return?
Each year HMRC send a Notice to Complete a tax return to anyone they think requires one, but be careful because it still remains your responsibility to inform them if you need one, and you’ll still get a penalty if you fail to complete one when necessary. These days penalties will apply even if the tax due is zero.
The most common reasons you’ll need to complete a return are:
- You are self-employed.
- You’re a partner in a partnership. The Partnership itself will have to file a return too.
- You’re a company director.
- You have annual income of £100,000 or more.
- You have annual income of £50,000 or more, and you or your Partner was in receipt of child benefit.
- You have rental income.
- You need to claim expenses or reliefs, or you’re a Trustee.
- You have Capital Gain’s Tax to pay.
- You have £10,000 or more in dividend or other investment income.
Technically, the last has no basis in the actual legislation; it’s simply HMRC adding on another category of people that they want a return from! That being said, if it’s a simple return then there’s no harm in filing one anyway, and it prevents any arguments at a later date.
If HMRC send you a return to complete but none of the apply to you then just give them a call on the Self Assessment Helpline. You may find that it’s an error, and that you don’t need one after all.
If you think you need a tax return for the 2013/14 tax year, which ended on 5th April 2014, then you have until the 5th October 2014 to tell HMRC. If you don’t there could be penalties.
Your contractor accountant can of course help, so if you’re not sure you can always give them a call.
Intouch Accounting currently offer the completion of a personal self-assessment tax returns for one employee as part of our comprehensive contractor monthly service please call us to find out more.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.