Requirement to Submit Personal Tax Returns
You may need to submit a personal tax return even if you have a salary and have paid tax thorough PAYE. For examples, HMRC will normally require a return if:
- You were self-employed at any time during the tax year, even if only part time
- You have untaxed income such as rent from property or capital gains from the sale of assets
- You had income from savings or investments of more than £10,000
- You were a company director (there are some exceptions)
- Your income was greater than £100,000 or, if you claimed child benefit, £50,000
- You are a high rate tax payer with income taxed at source at the base rate such as interest or dividends
If HMRC have notified you that they require a return, you must submit one, even if you have no further tax to pay.
HMRC apply penalties for late submissions. These start at £100 for a return one day late and can rise to well over £1,000. The penalties apply even if there is no tax to pay. Late payment of tax attracts additional penalties.
The normal deadline for submitting personal tax returns is 31 October if filed by paper or 31 January if filed on line. In other words, the return for the year to 5 April 16 needs to be filed by 31 October 16 (paper) or 31 January 2017 (online).
Do it yourself or leave it to an accountant?
Recently HMRC very publicly claimed that the tax returns do not need to be difficult but this is misleading. For many taxpayers the forms are too complex to understand. The guidance notes are confusing and HMRC’s own “Helplines” are anything but helpful. Virtually every budget introduces changes and creates additional layers of confusion.
An accountant may seem an unnecessary expense but does provide real benefits. Apart from saving you time they will:
- Know the current requirements and avoid over or under reporting of taxable income
- Identify potential tax savings. These can be material and can cover the cost of their fee several times over
- Assist with forward planning
- 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 returns depend on the amount and complexity of the work required. They start from £100 for the simplest returns; for a typical buy-to-let landlord the fees are around £250.
Contact us now for an initial free consultation with no obligation!