Another frequently asked question is – do I need to file a personal tax return?

If you fell into one of the following categories at any time between 6 April 2015 and 5 April 2016, then YES you do need to complete a 2015/16 tax return.

  1. You were self employed
  2. You were a company director – SEE BELOW
  3. HMRC have sent you notification to complete a return
  4. You had more than £2500 in untaxed income, eg from renting out a property
  5. Your savings or investment income before tax was more than £10,000 (lucky you!!)
  6. You have a Capital Gain – ie you made profit from selling shares, a second home, a business or other chargeable assets
  7. You or your partner’s income was over £50,000 and one of you claimed Child Benefit in the year
  8. You had income from abroad that you need to pay tax on
  9. You lived abroad and had a UK income
  10. You had dividends from shares and you were a higher/additional rate taxpayer
  11. Your income was over £100,000
  12. You had a form P800 send from HMRC saying you didn’t pay enough tax last year and you haven’t either sent them a cheque or arranged to pay it via your tax code

 

The company director question is an interesting one (oh yes it is!!!)

HMRC’s guidance on their website will tell you that all company directors need to complete a tax return – but that is not strictly true.  If you are going to have a tax liability based on your income, then yes, you need to notify HMRC and complete a return – but if you have no further tax liability, then there is no requirement to register for self-assessment, director or not!

So if in 15/16 like many directors, you had a small salary and dividends up the basic rate threshold, and no other income, it is more than likely that you have no personal tax liability, and therefore if you have not been asked by HMRC to complete a tax return, you do not need to send one in.

If you do fall into one of the categories above, and have not filed self-assessment returns before, you have to notify HMRC by 5 October 2016 that you have a tax liability for the year.  You then have until 31 January 2017 to file your return online.

We act for many small businesses completing tax returns for the first time – and we get that its daunting!  We can help you through the process and make it as stress free as possible– do get it touch for more information.