When you work for a company and pay your tax through PAYE , you usually will not have to undertake the laborious process of completing a self assessment tax return. However, if you run your own business, an organization director or for those who have earnings coming from real estate, retirement benefits or assets, you might have to submit a tax return, and just so that you know, the deadline is fast approaching!
Completing your taxes doesn’t have to be a complicated practice. Just follow some of the tips in our guide below:
Do you have to complete a tax return For 2011?
Not everybody would need to submit a tax return with HMRC.. Typically the most frequently found factors that would require you to complete a tax return in 2011 are:
• You are self employed or a sole trader
• You have got income from abroad that happen to be liable to tax here in the UK.
• You owe Capital Gains Tax from the sale of a property or shares
• You have income of over £10,000 coming from property or savings/investments
Completing your Tax Return
In the event that you are required by the Inland Revenue to complete a tax return , you’ve got two options of how you are going to do this. The first option is to complete a traditional paper based tax return, the deadline for which is ealier. The alternative options it complete your tax return online, where you liability for tax will be calculated for you and you will be given three months extra time to complete it. If you would like to complete your tax return online you will need to register with HMRC, if you are using a tax return accountant they will be able to complete the online tax return procerss for you.If you choose to submit your tax return online you will get an extra three months in which to file your return. Your tax will be calculated automatically and you will also receive an acknowledgement that HMRC have received the return.
Your Two Options
The self assessment tax return 2011 has two main sections within it:
• Core pages which everybody needs to fill out
• Supplementary/additional sheets
You need to complete all of the additional pages that may be relevant for your specific scenarios. Most of these documents consist of earnings coming from real estate, earnings as a result of saving interest as well as assets, CGT and and income that you may have from a pension.
Regardless of whether you actually complete a paper based tax return or you use the online option, you will need to make sure that you have submitted every one of the applicable pages. In cases where it’s a paper based tax return, don’t fail to remember to sign and date it, as this is one of the most common errors that HMRC sees.
Don’t forget the Tax Return Deadline
The due date to complete your tax return by is:
• Paper based tax returns – 31st October (or three months from the time the Inland Revenue sent you a notice to complete a tax return ) whichever may be the later
• Online tax returns – 31st January (or three months from the day of your notice to complete a tax return) whatever may be the later
Remember, if you fail to complete your tax return by the dates above, there i an automatic penalty of £100, so get yourself organise and complete your tax return today.
How do I complete a tax return?
You’ll be able to complete a tax return yourself if you know how or if you follow the guidance of the Inland Revenue. Otherwise you can make use of a tax return professional who’ll complete the return on your behalf. Click on the link if you would like help completing your self assessment tax return online