Do you need to complete an annual tax return?
28 November 2018
The main overriding reason why someone would need to complete an annual tax return is if you have income in excess of your tax free personal allowance (currently £11,850) which is untaxed, resulting in tax becoming due, or you have a capital gain to declare.
Here are some important points to consider:
- Do you receive dividend income in excess of the £2,000 dividend allowance, or interest income in excess of the relevant personal savings allowance (£1,000 for basic rate taxpayers, and £500 for higher rate taxpayers)?
- Do you rent out a property (including land) and receive income (before expenses) exceeding the £1,000 property allowance?
- Are you in receipt of any other untaxed income, or income from abroad?
- Are you self-employed with income (before expenses) exceeding the £1,000 trading allowance?
Tax returns aren’t only required to declare income and account for a tax liability, they can also be used to claim tax relief. For example:
- If you are a higher rate taxpayer and make gift aided charitable donations, or personal pension contributions
- If you have made investments attracting tax relief – Enterprise Investment Schemes, Venture Capital Trusts
How Old Mill can help
On the technical side, you can be confident that Old Mill are aware of your obligations and what should or should not be declared on your return, and how. We seek to use our knowledge to ensure that all relevant reliefs or opportunities for tax efficiency are made known to you and claimed as necessary. It is also possible to offset a proportion of our fee for dealing with calculating business profits or rental income against your tax liability.
Another important reason, and one which our existing clients often cite, is that of having peace of mind. Peace of mind that Old Mill will ensure that your tax return (and related tax affairs) is completed correctly and professionally, that all deadlines are met and that you have timely reminders of any action you should take. And peace of mind that Old Mill will liaise directly with HMRC on your behalf, so that tax really doesn’t have to be taxing!
Tax returns for the tax year ended 5 April 2018 are due for submission to HMRC by 31 January 2019. If you would like some help, please do get in touch.