October 16, 2021

Tax Returns - What do I need to know?

Far less exciting than the festive season, we know, but tax season is upon us again. With the self-assessment filing deadlines fast-approaching, what do you actually need to know?

Do I need to file a tax return?

As a general rule, anyone who receives income that isn’t taxed at source needs to complete a self-assessment return.

If you're a sole trader, the income you receive from your trade doesn’t have National Insurance Contributions or Income Tax deducted from it, so you need to tell HMRC about that income on a self-assessment form so they can calculate what, if any, tax you owe.

If you’re a limited company director, you’ll usually need to file a self-assessment to let HMRC know about any dividend income you’ve received from your company.

Other examples of income not taxed at source include rental income from any property you own, income from abroad, or investment (dividend) income.

What is the dealing for filing my personal tax return?

Under self-assessment, a paper return must reach HMRC by 31 October and an online return by 31 January. If you fail to file the return, you automatically receive a £100 fine - even if you don’t owe any tax or have paid the tax you owe. If, for whatever reason, you miss the deadline, the longer you delay the more you pay.

Everyone’s circumstances are different and we can help you plan accordingly, to ensure you pay the right amount and avoid any fines.

Get in touch to book a free initial consultation and let us see how we can help you / your business.

Duncan has a wealth of knowledge and experience, offering all of the services you’d expect from an accountancy and tax specialist. You're in safe hands.

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