Many people think that the Inland Revenue will ask them to complete a tax return if they are required to do one. This is not the case and the onus is on the tax payer to declare any income that they are required to on their tax return. Reading this article could help you to understand if you need to do a tax return and help you avoid a nasty fine from the Inland Revenue.
Who Needs to Do a Tax Return?
1. Self employed – If you are a member of a partnership you will always be requried to complete a tax return
2. Company directors – expect those of non-profits or charties
3. Ministers of religion
4. Foreign income that arises from overseas and is liable to UK tax.
5. Capital gains – If you have sold shares or property, for example, and need to pay tax.
If your income (for the following items) falls above these limits you will also need to do a tax return:
1. Savings and investments of £10,000 or more
2. untaxed savings and investments of £2,500 or more
3. property (before deducting allowable expenses) of £10,000 or more
4. property (after deducting allowable expenses) of £2,500 or more
5. The estate of a deceased person on which tax is still due
6. Total income of £100,000 or more you’ll need to complete a tax return.
If you want to claim expenses such as mileage or washing a uniform you do not have to do a tax return because these can often be reclaimed through a change to your tax code and as a result you will receive the expense in your pay cheque directly. However expense claims of over £2,500 need to be done via a tax return.
If you have any questions about whether you need to do a tax return, leave a comment below and one of our team can provide an answer to your question.