Do you complete a tax return?
In our earlier guide, we outlined five situations in which you should be completing a tax return, if you are not already. There are a number of reasons that you are obliged to complete a tax return, and here is our guide to five more scenarios that would give rise to you completing your own return.
1. You have income from overseas
You are obliged to complete a tax return if you are in receipt of any foreign income that is liable to UK tax.
2. You are a company director, minister, Lloyd’s name or member
You are obliged by HMRC to complete a tax return if you are any of the following:
- A minister of religion (any faith)
- A company director
- A name or a member of Lloyd’s
The only exception to this is if you are a director of a non-profit organisation (for example a charity) and you do not receive any payments or benefits.
3. You have lived or worked abroad or you are not domiciled in the UK
You may be required to complete a tax return if you are:
- Not ordinarily resident in the UK
- A dual resident of the UK and another country
- Not resident in the UK
- Not domiciled in the UK and claim the ‘remittance basis’
It can be complicated to determine what tax is payable in the UK if you fall into one of the above categories. HMRC can assist you with questions about your residential status and the ‘remittance guide’.
4. Your annual income is over £100,000
Very simply, if you receive total income of £100,000 or more per annum you will be required to complete a tax return.
5. You need to claim certain tax expenses or tax reliefs
There are certain situations where you may be employed and want to claim certain tax reliefs or expenses. In these scenarios, you will have to complete a tax return.
For example, if you are employed and you want to claim for expenses or professional subscriptions of £2,500 or more, you will need to complete a tax return in order to do this.
There are also some less common reliefs (for example Enterprise Investment Scheme relief or relief on Venture Capital Trusts) which can only be claimed by completing a tax return.