Do you need to file a tax return this year?

The tax year runs from 6 April to 5 April, and tax returns for last year (that’s 6 April 2017 to 5 April 2018) are due to be filed by 31 January 2019.

If you meet any of the following criteria – then YES you do need to file a tax return.

  • You were self-employed at any point between 6 April 2017 and 5 April 2018 and your income from this was more than £1,000
  • you received more than £2,500 from renting out property
  • you received more than £2,500 in other untaxed income, for example from tips or commission
  • your income from savings or investments was £10,000 or more before tax
  • your income from dividends from shares was over £2,000
  • you made profits from selling assets eg shares or a second home
  • you were a company director and received income that needs to be declared
  • your income (or your partner’s) was over £50,000 and one of you claimed child benefit
  • your taxable income was over £100,000

You also need to send a tax return if you:

  • need to prove you’re self-employed, for example to claim Tax-Free Childcare or claim Maternity Allowance
  • want to make voluntary Class 2 National Insurance payments to help you qualify for state benefits

To file a tax return, you need to have first registered with HMRC.  You should have done this by 5 October 2018, but if you haven’t, then you need to get on with this ASAP, by following the link here if you are self-employed:

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

HMRC will then send you your UTR (unique taxpayer reference) number.  Without this, your tax return cannot be filed, either by yourself or by an accountant.  The reference can take a few weeks to come through, so do not leave this until January!!

If you are going to file your tax return yourself, you will need your government gateway ID and password.  If you are using an accountant, they can generally file your return using their own software and government gateway log-ins, but will also need time to set themselves up as your agent.

It is your responsibility to let HMRC know if you have to file a return – so if you have a new source of income in the year, or a one-off capital gain (eg if you have sold a rental property) then don’t wait for HMRC to ask for the information!

Penalties for late filing are an automatic £100.  Even if there is not any tax actually due, if you are required for file a return, and this is not with HMRC by midnight on 31 Jan- you will get a fine!

The tax is also due to be paid by 31 January.  When you file your return, you will get a calculation of the tax due as part of the submission process, or your accountant will tell you when they send you your return for approval and signing, so the sooner you do this – the sooner you will know the amount you have to pay.

Probably a good idea to know what this amount is before you hit the Christmas shops!

For any more information, or help with your personal tax return, please contact Rosie Forsyth at Wilkins & Co