A tax return needs to be completed once a year, paper tax returns must be done by the end of October, and online ones need to be done by the end of January of the following year. If you have an accountant they will talk to you through all of this and tell you what it is you need to do to help prepare them for the returns.
How do I know if I need to do a tax return?
If you fall into one of the following categories you are required to complete a tax return:
• Self-employed – if you work for yourself, you will need to complete a return for every year you are trading for
• Director of a company – this does not include those who work for a non-profit organisation
• High income – If you earn more than £100,000 you need to complete a tax return as your tax code doesn’t collect the full amount you should be paying
You are also required to file a tax return if you have property, savings or other investments over a certain level that you receive income from. This includes income from overseas and estates of the deceased. There are other reasons one may need to complete it, your accountant will be happy to help you establish whether this includes you or not.
How do I complete a tax return?
This can be done online or in paper form. The online facility can help you work through the process but hiring a reliable accountant may be far more beneficial to you. Not only will this ensure you are completing it correctly but it will also mean you save yourself time.
Around April time each year, you will receive a letter from HMRC telling you to complete a tax return. If you don’t receive this letter but feel you should have then make sure you speak to your accountant.
How can I help my accountant?
Any accountant will appreciate you helping them, so try giving them the following information for each tax year(6th April -5th April):
• Any employment details (P60 form)
• Receipts and invoices that are deductible from your income
• Bank interest details
• Pension contributions
• Income from letting a property or land
• Capital gains or losses you’ve made
Your accountant may also need other information from you like whether you gift to charity or any other taxable income that isn’t included here.