This year with the changes in the tax law many more people will be required to complete a self-assessment tax return.
The list of people HMRC require to submit a return include:
- Partners in partnership.
- Directors of companies, except directors of not for profit organisations who pay no tax.
- Ministers of any religion or faith.
- Trustees or executors of estates.
- Anyone receiving regular income from a trust or settlement.
- Anyone receiving taxable foreign income.
- Anyone receiving gross interest of £10,000 or greater.
- Anyone with annual income of £100,000 or greater.
- Anyone whose income or partner’s income which is greater than £50,000 and receives child benefit.
- Anyone with untaxed income.
Untaxed income includes interest paid gross, dividends and rental income etc. Due to the changes on how dividends are taxed, people who historically have had no tax to pay are looking at the possibility of quite a substantial tax bill.
A further sting in the tail to bear in mind is the ‘Payment on Account System’ where two extra instalments are required to pay towards the next year’s tax bill.
All tax payers need to be aware that failure to notify HMRC of the need to complete a tax return may result in penalties and interest charges.
If you are worried about your tax liability, or believe that you should have registered for self-assessment, please contact Re:Accounts and we will help you register and calculate your liability.