Personal Tax Planning and Advice
A Tax Return is required each year if you
- work for yourself – that is, you are self-employed or in partnership (we will also require Partnership Tax Returns)
- are a company director
- are a Name or member of Lloyd’s
- are a minister of religion (of any faith or denomination)
- have income from letting any property or land you own (but if you are an employee and this income is less than £2,500 a year a Tax Return may not be necessary)
- receive other untaxed income and the tax due on it cannot be collected through a PAYE tax code
- receive annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income
- have taxable foreign income, even if you are claiming that you are not normally resident in the UK (this includes non-resident landlords).
Additionally, if you are an employee or pensioner a Tax Return is needed if you
- have annual income from savings or investments of £10,000 or more (before tax)
- have annual income of £100,000 or more
- have tax due at the year end that cannot be collected through your PAYE tax code for the following year
- have untaxed income of £2,500 or more annually (but some pensioners may be able to pay the tax on this through their PAYE tax code)
- have annual claims against tax for expenses or professional subscriptions of £2,500 or more
- are 65 and over and entitled to some higher personal allowance (but not the full amount) we may need a Tax Return to work out how much.
A Tax Return may be required from you if you:
- have sold or given away chargeable assets worth more than four times the annual exempt amount. For 2005-06 the annual exempt amount is £8,500 so that is £34,000, or
- deduct losses from your gains, but your gains before any losses or taper relief are more than the annual exempt amount, or
- do not deduct losses but your gains after taper relief are more than the annual exempt amount, or
- want to claim an allowable capital loss, or make any other Capital Gains claim or election for the year.
Details of the annual exempt amounts for all years can be found on the website www.hmrc.gov.uk
A Tax Return may be required for other reasons – perhaps to check if the correct tax has been paid overall. You can ask for a Tax Return at any time – for example, if you want to claim a particular tax relief or exemption.