Personal Income Tax
H M Revenue & Customs (HMRC) issues Income Tax Returns to individuals in the following circumstances:
- To individuals with complicated tax affairs,
- To individuals who are self employed, if trading as a partnership the business will also be issued with a Return,
- To individuals who receive income from either land or property, even if you make a loss on your rental income, it should still be declared,
- To individuals who receive income from overseas,
- To individuals who receive income without tax being deducted at source.
If you are issued with a notice to complete an Income Tax Return, you must declare all income that you received during the tax year in question, even if some of it has been taxed at source i.e. Pay As You Earn (PAYE).
If you have not been issued with a notice to complete an Income Tax Return but believe that you fall into any of the above categories above you should notify HMRC that you wish to complete a Return.
The UK system of tax declaration is called Self Assessment, the purpose of which is to put the responsibility of reporting on the tax payer, it is the tax payer’s duty to “self assess”. Should HMRC become aware of any income received and remains undeclared, you could incur a series of penalties and interest for each year that you did not self assess.
If you are unsure as to whether you should be completing an Income Tax Return, or would like us to prepare and submit a Return on your behalf, please contact us to arrange a free consultation.