PERSONAL TAX RETURNS
Do you need to submit a personal tax return?
A personal tax return is sometimes required by HMRC from taxpayers, in which you declare your income and determine how much tax you either owe, or are owed in refunds.
Even if you are paying tax through PAYE you may still need to submit a personal tax return. HMRC may request a tax return form for the following reasons:
- You were self-employed at any time during the tax year and earned more than £1000 doing so
- You have an untaxed income source of income (such as rent from property, tips and commission, or capital gains from sale of assets, income from savings or investments of more than £10,000, or foreign income)
- You were the director of a company or a partner of a partnership
- Your income was greater than £100,000
- You claimed child benefits and had an income greater than £50,000
- You are a high-rate taxpayer
You may wish to fill out a personal tax return if you need to:
- Claim income tax relief
- Prove you are self-employed, for example, to claim Tax-Free Childcare or Maternity Allowance
If you would like to check if you need to send a personal tax self-assessment return, click here.
You must submit your personal assessment form before the deadlines to avoid facing penalty. For the year 2020, you will need to have registered for Self Assessment by the 5th October 2020 and submitted the tax return and paid the tax you owe by midnight 31st of January 2021.
These deadlines can creep up; if you miss them, they can cost you hundreds of pounds in penalties. You may be able to appeal against penalties if you have a reasonable excuse but it is quicker and easier to avoid this in the first place.
AN ACCOUNTANT WILL HELP YOU
For many taxpayers, the forms and language used by HMRC is often misleading and confusing. The call centres where they supposedly help often have long wait times and ill-informed consultants who end up muddying the situation even more than before.
Although an accountant may seem an unnecessary expense, employing one provides huge benefits. An accountant will:
- Understand the current requirements and avoid over or under-reporting of taxable income
- Identify potential tax savings. These can be significant and will potentially cover the cost of their fee several times over!
- Assist with forward planning and being proactive
- Provide reminders to avoid late filing
- Deal with HMRC on your behalf. They will resolve queries promptly and make sure that HMRC treat the taxpayer fairly
Our fees for personal tax start at £100. For more information on pricing, click here.
If you would like a free consultation, fill in the form above for a call back. It won’t bind you into working with us and we will be able to provide you with answers to any and all questions you may have about accounting.