Taking Account

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  • Taking Account

Do you need to complete a tax return

October 2010

The recent press coverage of taxpayers who may be receiving unexpected tax refunds or tax demands has created yet further anxieties about the integrity of our tax system. The refunds and demands are due to HMRC errors in tax codings and other issues for the two tax years ending 5 April 2009 and 5 April 2010. In the main, tax payers who are not required to complete a self-assessment tax return will be affected, although not all tax payers in this category will be included.

If you complete a self-assessment tax return your annual tax position is reconciled as part of the filing process.

Certainly, if you do receive an unexpected demand you should check HMRC's calculations - if you have multiple employments or other complicated matters that affect your tax position you could well benefit from a consultation with a tax professional. Please call if you would like our help.

If you don't presently complete a tax return we have included a list below of tax payers who should be submitting a return. Again, if you would like our help in organising registration, please call.

Who needs to complete a tax return?

The most common reasons for needing to fill in a tax return are listed below.

  • You're self-employed
  • Company directors, ministers, Lloyd's names or members
  • Income above a certain level from savings, investment or property - income from savings and investments of £10,000 or more; income from untaxed savings and investments of £2,500 or more; income from property (before deducting allowable expenses) of £10,000 or more; income from property (after deducting allowable expenses) of £2,500 or more; annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income); income from the estate of a deceased person on which tax is still due
  • If you receive a reduced age-related allowance because you're 65 but your income is over a certain level (£22,900 for the 2010-11 tax year), you'll need to complete a tax return. But there are exceptions, for example if your tax affairs are very straightforward.
  • Income from overseas
  • Your annual income is £100,000 or more
  • You need to claim certain expenses or reliefs
  • You owe tax and HMRC can't collect it through your tax code, or you prefer to pay direct
  • You have Capital Gains Tax to pay
  • You've lived or worked abroad or aren't domiciled in the UK
  • You're a trustee

Hilton Sharp & Clarke