Each Tax payer in the UK is required to complete their self-assessment tax return and submit it to HMRC, if they fall under self-assessment criteria. It is essential to understand that as a tax payer you might not understand the full complexities of your situation.
Self-Assessment Tax Return
The tax year in the UK runs from 6 April to 5 April and the tax return must be submitted by 31 January following the end of the relevant tax year.
Failing to submit the tax return by the deadline of 31 January incurs an automatic penalty by HMRC. It continues to increase unless the tax return is submitted.
You need to submit your tax return if you are
- Director of A Limited Company Tax Return
- Self-Employed and CIS contractor Tax Return
- Landlord Rental Property Income Tax Return
- Tax Return If Income Is More Than £100k
- Tax Return to Declare High Income Child Benefit Charge
- Capital Gains Tax Return
Director of A Limited Company Tax Return
A director in the UK needs to do the tax return if they receive the income from dividends. They need to submit their tax return where they have other reportable income sources such as income from rental properties or income from rental properties.
Directors need to be mindful of taking income from one-man director/shareholder companies.
A director is also the 100% shareholder and is a person with significant control PSC. Therefore, a tax return is required, and careful planning is needed to plan and save taxes effectively and efficiently.
Self-Employed and CIS contractor Tax Return
A self-employed individual needs to account for their taxes and submit tax returns to HMRC and pay class 2 and class 4 national insurance. They can deduct their business expenses to mitigate their tax liabilities.
Landlord Rental Property Income Tax Return
If you are in receipt on rental income for your rented property, you need to declare that on your tax return together with the other income received during the particular tax period. Tax is due on rental profits what it is means is that you can claim expenses incurred on the property.
You may have undeclared or unreported rental income for many years. We can help you declare that income to HMRC before you are being investigated by HMRC. We can arrange the most favourable terms with HMRC to reduce the overall tax liabilities for you under reported rental income and complete your relevant tax returns.
Tax Return If Income Is More Than £100k
If your income exceeds £100,000, personal allowances are reduced and at £120,000, no personal allowance is available.
A tax return must be submitted where the income exceeds the £100,000 threshold to report the tax payable.
Tax Return to Declare High Income Child Benefit Charge
Taxpayers in the UK need to complete their tax return where they are in receipt of child benefit and the taxpayer’s income exceeds £50,000. The tax return is completed by the partner who is earning the higher income between both partners. This is called the high-income child benefit charge, and this should be declared and paid back to HMRC.
Capital Gains Tax CGT
Where you receive a gift of sell an asset you may need to complete your capital gains tax return CGT. There is a separate section on our website that has detailed information on capital gains tax.
We as Chartered Accountants have helped may individuals to prepare their capital gains tax return and mitigate their tax liabilities.
If you require any information please don’t hesitate to contact us.