As tax return season begins, it’s worth every individual checking whether they need to complete a tax return which is due by 31 January 2018. This includes any tax that is owing from the taxable activities in the period 6 April 2016 to 5 April 2017.
Did you earn more then £50k in total taxable income while receiving child benefit? I have heard of many individuals having to pay back over 3 years of child benefit because they did not register for self assessment in the first year their taxable income exceeded this threshold. Please don’t think HMRC will never find out because they have access to your P60 and other systems that are slowly starting to talk to each more so it’s not worth the risk.
Perhaps you started letting out your investment property during this time? Or disposed of an investment property or shares where you’d made a capital gain above the capital gains tax allowance?
Speaking of shares, the new dividend tax came in for the 2016/17 tax year so if you received dividend income over £5,000, you will also need register for self assessment.
Also, maybe your P60 showed you earned over £100k for the first time due to a bonus you received during the tax year? Even if you are expecting to drop below the threshold this current tax year (2017/18) you need to file a self assessment for the 2016.17 tax year.
Started self employment? Even if you started earning income in March 2017, you still must register.
Lastly, if you were a director of a limited company that is trading and you started to draw income (whether that be salary or dividends) from the company, don’t forget your self assessment requirements – this counts for people trading inside IR35 to.
These are just some of the reasons why you would need to complete a tax return for the 2016.17 tax year (pension drawdowns, CIS workers also will need a self assessment).
It is your responsibility if any of the above apply to you, to register with HMRC and pay any taxes owing by the 31st of January 2018.
Here at KFH Accounting, we register our clients for self assessment for FREE so you don’t need to spend hours on the phone or online doing it.
To find out more about our affordable tax return services and tick the ‘must sort tax out’ off your To Do List, please get in touch.