Who needs to complete a tax return?

self assessment forms

The  deadline for online self-assessment is round the corner and with all the talk about tax returns I have found it interesting, listening to people’s views regarding the completion of them. Just to clarify some of the misunderstanding surrounding who needs to complete one I have summarised below the most common reasons for needing to complete a tax return.

1. You are a self-employed sole trader or a partner in a business partnership

You will need to complete a return even if your profit is under the personal allowance, if you make a loss or if it’s your final year of trading.

2. You are a company director

3. Your annual income is £100,000 or more -you may have higher or additional tax to pay that hasn’t been collected through your tax code.

4. You have income from savings, investments or property

If you receive £10k or more from your taxed savings/investments and £2.5k or more from untaxed savings.

If you receive £10k or more from property(before deducting allowable expenses) and £2.5k or more from property (after deducting your allowable expenses)

5. If you are employed and want to claim expenses of £2.5k or more

6. You or your partner receive child benefit and your income is over £50,000

7. You have Capital Gains Tax to pay e.g you have sold, given away or otherwise disposed of an asset such as a holiday home or shares.

The key point is that you will need to complete a tax return even if you don’t have to pay any tax or you’ve already paid it.

If you are not sure whether you need to fill in a tax return you can use the very useful toolkit on the following link: https://www.gov.uk/check-if-you-need-a-tax-return

If you would like to chat about any of the above or need assistance in completing your return please get in touch to organise a free no obligations meeting. http://www.winchesterbookkeeping.co.uk

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