Nine million people in the UK are required by law to submit a Self Assessment tax return – you could be one of them without even knowing it.
If you need to submit a Self Assessment tax return, the good news is that you have until 31 January 2014 to do it online if you missed the paper deadline of 31 October.
As a general rule, if you have one job and your employer deducts PAYE and National Insurance (NI) tax from your regular wages, you probably don’t need to submit a tax return.
On the other hand, if you filled out a tax return last year, have untaxed income from investments or property (including overseas investments), or make capital gains above the annual exempt amount of £10,600, you will probably have received the necessary forms from HMRC.
Most taxpayers don’t need to submit a tax return because their tax is automatically deducted from their salary. But another nine million people need to submit one by the 31 January 2014 or face a hefty penalty. Chances are good that you will need to submit a tax return if any of the following scenarios apply to you:
- You’re self-employed
- You’re the director of a limited company
- You have an annual income of £100,000 or more
- You have an income of £10,000 or more that is not taxed (for instance, rental income or certain e-bay sales)
- You’re a minister of religion
- You are employed and want to claim work expenses or professional subscriptions of more than £2,500
- You are required to pay Capital Gains Tax from the sale of assets like shares or property
- Your household has a high-income earner and receives a child benefit
- You’re a trustee of someone who has died
NOTE: Even if you didn’t receive tax return forms, you will still face steep fines if you don’t submit on time.
It’s up to you to tell HMRC if you think you have income which needs to be taxed. It’s also up to you to fill out the Self Assessment forms accurately and truthfully. You have until 31 January 2014, it’s a good idea to register as soon as possible.
If you require any assistance or help with your tax issues, visit 1st Contact Accounting.