Under the self-assessment system, certain taxpayers are liable to complete a Return; if they are a Director of a company, if they are self-employed, have income over £100,000, if their expenses claim exceeds £2,500, or if there is untaxed income in excess of £2,500 or capital gains. This year there is also a new category of taxpayer required to complete a return – those who are required to pay the High Income Child Benefit charge. This new tax charge is anticipated to affect approximately 1.2 million families where one or both of the couple earns more than £50,000.
If you fall into one of the above criteria, you do need to ensure that you obtain a tax reference and file a tax return for the year ended 5 April 2013 by 31 January 2014. Failure to file a return on time does create huge penalty issues; a return three months late could result in penalties in excess of £900 even if the person owes no tax!
If you have received a 2012/13 Tax Return, then you have until 31 October 2013 if you want to complete a paper version; after that date you are obliged to file electronically by 31 January 2014.
Common areas where you might need some advice regarding the entries on your Tax Return:-
· You are self-employed or a director of a limited company.
· You want to claim for expenditure incurred personally in respect of your employment. This could include your professional subscriptions or for business mileage undertaken in your own car
· You receive income from property. This could be from a ‘buy-to-let’ property, a holiday home that you let or even a lodger in your own home.
· You have a variety of investment income sources, such as a managed investment portfolio, and differing rates of tax have been deducted at source.
· You are a higher rate taxpayer and you regularly make Gift Aid donations or personal pension contributions so wish to claim additional tax relief.
We offer a free 30 minute consultation, so if you would like any additional information regarding the above or any other tax issues concerning you, then please contact us or visit us in our offices in Walmley Village
This article appears in Walmley Pages, a local magazine delivered free to homes in the B76 postcode.