| What are Self-assessment tax returns? | | | | Accountant or contact HMRC. In addition a |
| These are tax returns issued by HM Revenue & | | | | Self-assessment tax return may also be filed in order |
| Customs (HMRC) for completion by UK tax payers. | | | | to reclaim over paid tax. |
| The regime was introduced in 1997, with the idea of | | | | When does the return need to be filed? |
| simplifying the UK tax system and it is certainly | | | | Tax returns cover all income and gains for the fiscal |
| debatable if this has been achieved! | | | | year, that is from the 6th April in one year to 5th April |
| Who needs to file a return? | | | | in the next. There are additional rules if the return is |
| For the majority of UK individuals their income is taxed | | | | issued late by HMRC, but normally if you wish HMRC |
| at source, such as employment income which is taxed | | | | to calculate the tax for you or if you wish to file a |
| under the PAYE system. Therefore, most people will | | | | paper tax return then the filing deadline is 31st October |
| not normally need to file a Self-assessment tax return. | | | | following the end of the tax year, else it is 31st January |
| However, if there is any income or gains that is either | | | | following the end of the tax year. For example, the tax |
| untaxed or there is additional tax due, then it is the | | | | return filing deadline for the year ended 5th April 2010, |
| individuals responsibility to notify HMRC. Usually in all | | | | if you require HMRC to calculate the tax due for you |
| circumstances if HMRC issue a Self-assessment tax | | | | (or if you wish to file a paper return) is 31st October |
| return then it must be completed and filed. Below are a | | | | 2010, else the filing deadline is 31st January 2011. There |
| number of examples where there is normally a | | | | are penalties for the late submission of tax returns. |
| requirement to file a tax return (please note that this list | | | | When does the tax liability need to be paid? |
| is not intended to be comprehensive): | | | | In most circumstances, the outstanding tax due is |
| Self-employed individuals; | | | | payable by the 31st January following the end of the |
| Individuals who are members of partnerships; | | | | tax year. There are penalties and interest chargeable |
| Company Directors; | | | | for late payments. In certain circumstances tax payers |
| Trustees; | | | | are required to make payments on account these are |
| Individuals who have sold assets that are subject to | | | | payable bi-yearly on 31st July and 31st January. |
| capital gains tax; | | | | The author does not guarantee the accuracy of any |
| Members of parliament; | | | | information provided in this article and recommends |
| Ministers of religion; | | | | that you do not take any action, whatsoever, based |
| Pensioners with an annual income of £100,000 | | | | on the information provided. By the fullest extent |
| or more; | | | | permitted by law, the author does not accept any |
| Employees or pensioners with an annual income from | | | | responsibility for any actions you may or may not take |
| savings or investments of £10,000 or more; | | | | based on information contained in this article. This |
| An employee or pensioner with untaxed annual income | | | | article contains general information and is not a |
| of £2,500 or more; | | | | substitute for specific independent professional advice. |
| An individual who receives rental income. | | | | In addition it is emphasised that much of the information |
| If you are in any doubt over you requirement to | | | | provided in this article is time sensitive and information |
| complete a tax return, it is recommended that you | | | | contained within it may be out of date. |
| seek professional advice from a Chartered | | | | |