UK Tax Return

Filling a UK tax return

Perhaps, it's the first time you are puzzling about how to do Filling a UK tax return. Well! I will guide you. Initially, you have to be informed that unlike a lot of dispensable things in life, a TAX return is something you just cannot get away with without completion, so pay a LOT OF heed to this article; we've tried to make the whole process as little painful as possible.

There are various classes of people who need to Filling a UK tax return, check out the list below to see if you are also one of them:

PEOPLE WHO:

· are self employed

· earn > £2,500/year from property income

· have an a source of income that has not already been taxed under PAYE (pay as you earn)

· have a source of income from a settlement or a trust

· have a source of taxable income from countries other than the UK

· are directors in a company, a Lloyd's Name or member, or a religious minister

. have income from savings or UK dividends of > £ 10,000 p.a (per annum) PBIT ( profit before interest and tax)

· have a source that pays off > £ 10000 p.a, regardless of its category

· have credited tax that cannot be paid through PAYE (pay as you earn) system

· have business related annual expenses of greater then £ 2500

· have a personal allowance delivered to them since they are above the age of 65

-NEED TO FILE A TAX RETURN

CAPITAL GAINS TAX

All capital gains or losses (including those incurred in share sale or purchase) need to be accounted for while filing a tax return in cases where you:

· have gains above the annual exemption of £ 9600. Amounts below this are exempt.

· have given away, gifted, disposed of assets more than the worth of the annual exemption quadrupled. In 2008/09 that amounts to £ 38,400.

· need to adjust a present allowable capital lose to a foreseeable future gain.

Tax Dates and deadlines

There are two ways to fill in a tax return, the paper based, and the online self-assessment system.

If you have filled an online return before, you will be notified by the HMRC (her majesty revenue and customs) to file a tax return for the years that follow.

Paper returns have to be filled before October 31 and for the online system you get an extension to January 31

The final date for paying as much as half the amount due is January 31. For the other half, you get until July 31st to pay it all.

If you started self employment at a time that made it inconvenient to fill in a return by October 31st, you can ask for leniency if you inform HMRC of these circumstances within the 1st three months of you self employment - otherwise a fine of £ 100 will be imposed on you by the HMRC. The HMRC has announced a new helpline to facilitate such self employers:08459 154515

Important information to be included in the tax return:

You don't have to include information about tax-exempt of tax-free income sources such as the gains you achieve when you sell out your only home or principal residence. But on the other hand, a tax return will and does require all information about your taxable sources of income that have incurred from April 6th to the next April 5th , and information about the tax that you have already pain-  if any.

You must disclose all incomes including property, savings and investment income. Also include in any claims you may have for exemptions or deductions or allowances, such as personal pension contribution and the personal allowance.

Pages you may have to fill:

The core tax page

These are the forms that everyone has to complete and contain you personal information.

Self-employment pages

You'll receive a self-employment page too if you come under this category

Other forms you may or may not need to complete

SA102: filled when you are a director as well as a self employed person.

These will not be sent out to you automatically, you will have to choose to have them sent to you if you need them.

Download these from the official HMRC website or call at their helpline Tel 0845 900 0404. Between 8.00 am to 10.00 pm, even in holidays including weekends and bank holidays.

Would you require an accountant or a tax consultant to help fill these in?

You may or may not, the system is fairly simple and you get used to it after you file a return or two and HMRS's free help is always available to assist you, however if you do go to an accountant, make sure he is qualified and trained for this type of work. It's recommended actually to go to an accountant if you're stuck somewhere of need some important advice or consultation. If you cannot afford one, of need financial assistance when hiring one, feel free to ask the HMRC for their TAX aid.

Tax Fines and penalties

If you forget to file in a tax return, that means you'll be fined £100 plus any interest that may have been incurred on the unpaid tax. And you may also be levied with further fines and penalty interest.

Finally, listed below are some advantages of filling an online return:

 



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