Who Needs to Complete a UK Tax Return?

Posted by on Jun 20, 2017 in News Alerts, Newsletters | No Comments

In the UK, we are in the fortunate position where most people earning a PAYE salary or wage or receiving a pension do not need to complete a tax return.

However, each year, as working and lifestyle patterns change, the number of tax returns increases.  More than 11,500,000 were filed for the 2015-16 tax year.

For the 2016-17 that ran from 6th April 2016 to 5th April 2017 tax year, if any of the following apply to you, a tax return is required:

  • you were self-employed either as a sole trader or partnership;
  • you received £2,500 or more in untaxed income from renting out a property, trading on an online platform, savings and investments or similar;
  • your savings or investment income was £10,000 or more before tax excluding income from cash or share ISAs;
  • you made profits from selling a second home, shares or other chargeable assets on which Capital Gains Tax must be paid;
  • you were a Company Director at any point in the year even if you receive no pay or benefits (there is an exemption for Directors of non-profit organisations who receive no remuneration);
  • your income or your partner’s income was over £50,000 and one of you claimed Child Benefit;
  • you earned income from abroad where tax is due (if tax has been paid abroad, in most cases, you will be able to claim this back to reduce your UK tax charge);
  • you lived abroad and had a UK income;
  • you received Dividends from shares and this totalled over £5,000;
  • your income was over £100,000;
  • you were a trustee of a trust or registered pension scheme.

In some circumstances, you would need to submit a tax return to claim a tax rebate from HMRC.  For instance, on:

  • donations to charity;
  • private pension contributions as a higher or additional rate taxpayer, or if your pension scheme does not apply an automatic tax relief (which is normally the case);
  • unreimbursed work expenses over £2,500.

If you have not completed a tax return before, for all except sole traders and partnerships, register online with HMRC at: https://online.hmrc.gov.uk/shortforms/form/SA1

For a new sole trader, register with HMRC at: https://online.hmrc.gov.uk/registration/newbusiness

For a new partner, register with HMRC at:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/SA_iForms/1.0/SA401_20167&template=SA401_en_1.0.xdp

If you are the ‘nominated partner’, you need to register both yourself and the business partnership at:

https://online.hmrc.gov.uk/registration/newbusiness

HMRC target to post your Unique Taxpayer Reference that enables you submit a tax return within two weeks of registration.

With this you can either prepare and file a paper tax return before the deadline of 31st October 2017, enrol for the HMRC online service that grants a longer deadline of 31st January 2018 or appoint a tax advisor to act as your Agent.

To appoint CooperFaure, we would need is your Unique Tax Reference, National Insurance Number and Post Code to act on your behalf.

If you would like to arrange an initial free consultation to discuss your tax affairs or would like any further information, please email us at tax@cooperfaure.co.uk