Do I need to File a tax Return??

As accountants and tax advisers we are often asked the question: "Do I need to file a tax return?"

If HMRC send a notice reminding you to fill in a Self Assessment Tax Return, you should do so.  But what happens if you are not presently reminded or required by HMRC to send in a return?

The following persons should notify HMRC that they need to submit a return even if HMRC are not presently asking them to do so:

• If you are, or become, self-employed (this includes being a member of a partnership)
• If you are a company director, a minister of religion or member of Lloyd’s

You are also required to send in a return if your income from the following sources exceeds:

• £10,000 or more income from savings and investments
• £2,500 or more income from untaxed savings and investments*
• £10,000 or more income from property (before deducting allowable expenses)
• £2,500 or more income from property (after deducting allowable expenses)

* Although there is no requirement to request a tax Return if your untaxed savings income is below £2,500, it is necessary that you advise HMRC to include the income as a deduction on your Notice of Coding

You are also required to file if you have:

• income from an annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
• income from the estate of a deceased person on which tax is still due

Other reasons:

• You are 65 and receive a reduced age related allowance
• You have any foreign income that is liable to UK taxation
• Your annual income is over £100,000
• You need to claim certain allowances or reliefs
• You have capital gains tax to pay
• You are a trustee
• If you have lived or worked abroad or you are not domiciled in the UK
• If you have untaxed income sources and are using personal allowances elsewhere

The above is quite a list, however, the responsibility for filing tax returns ultimately rests with the individual.

If you are in any doubt as to whether you should be filing a tax return, please contact BDM for guidance.