At Re:Accounts, we often receive calls from people who are unsure of whether they need to prepare a personal tax return. It makes us wonder how many people genuinely think that there’s no need for them to submit one but, actually, they should!
So here’s the low down on who should complete a personal tax return… and should probably be saving along the way for their tax bill.
You need to prepare a tax return if you:
- Are a director of a limited company
- Are a sole trader
- Receive rental income
- Have dividends of greater than £2,000 during the tax year
- Receive any other income that isn’t taxed at source
- Earn more than £50,000 and have been receiving child benefit (plus you may need to repay some or all of your benefit)
No wonder a record 10.8 million people submitted a tax return last year!
Tax Return Love
Two types of people love completing tax returns:
1. Accountants – we enjoy delving into allowances, expenses and earnings to minimise your tax payments and save you money.
2. Employees with expenses greater than £2,000 that are not paid by their employer – they can complete a tax return to get a tax rebate (hopefully!). It is important to note that if the expenses are less than £2,000 then a short form can be completed rather a return.
Tax Return Help
Tax Returns can be daunting if you’re not used to them. Many people put it off, only to realise that the deadline (31st January) is approaching fast and that there are financial penalties for late submissions!
Last January, 30,000 people filed their tax returns online during the final hour. Even more missed the deadline completely; 750,000 people risked the £100 penalty for late submission. Here are the most unusual – and unacceptable – tax return excuses revealed by HMRC:
- My wife has been seeing aliens and won’t let me enter the house.
- My ex-wife left the tax return upstairs and I cannot retrieve it because I suffer from vertigo.
- I’ve been far too busy touring the country with my one-man play.
- I spilled coffee on it.
- My business doesn’t really do anything.
- I thought my business/rental was loss-making
Would you like a stress-free tax return?
The friendly gang at Re:Accounts can cut through the tax speak and make sure that you have the right numbers in the right boxes – all in good time and without the need for dramatic excuses!
Give us a call. We love a natter… and a coffee.