There are many reasons why we might need to complete a tax return, and this is not limited to high earners or property landlords. Having an awareness of when these arise will stop you from getting caught out and risking a tax penalty in the future!
Our tax expert Michelle gives us the lowdown on when we need to be doing a tax return….
- You may recently have started your own business. This could be as a sole trader or a partner in a partnership or you may have become a director of a company.
- You have savings and/or investment income in excess of £10k in the tax year
- You have income from land and property. This could be a property you let or a room you rent in your home.
- During the tax year you have made pension contributions in excess of your annual allowance
- You or your partner receive child benefit and your adjusted net income is over £50,000.
- You have capital gains where:
- You have given away or sold assets worth £49,200 or more; or
- You have a capital loss but your gains net of any losses are more than the annual exemption (£12,300); or
- You have no losses to claim but your gains are more than the annual exemption; or
- You need to make any other capital gains tax claim or election for the year.
- You may want to claim income tax relief on things like VCT or EIS investments, pension contributions or charitable donations.
Whatever the reason, it is important to notify HMRC on time. HMRC should be notified by the 5th of October following the tax year in question if you have not completed a tax return for the previous year.
You should ensure that your return is filed on time. You have until the 31st of January following the tax year you are reporting to submit the tax return online. If you wish to submit a paper return this is brought forward to the 31st of October following the tax year.
If you think any of the above might apply to you, you can contact our team at info@enrichtc.com
