Tax Returns: An overview
Written by Ray Coman
Most people in the UK do not have to complete a Tax Return. There is often no need to file a Tax Return if your only income comes from employed earnings, state benefits or a pension.
Typically, a Tax Return is due if you are self-employed, receive rental profits, investment income or you earn over £100,000.
It is your legal obligation to let HMRC know that you have to complete a Tax Return for any tax year. The tax year runs from 6 April to the following 5 April.
The time limit for notifying HMRC of your chargeability to tax is 31 January after the end of the tax year. If HMRC have to prompt you to notify them to complete a tax return after the deadline, the penalty can be as high as 100% of the tax owed. On the other hand, there may be no penalty for notifying HMRC after the deadline if you do so voluntarily.
Although you may avoid a penalty for late notification, there will be a fixed penalty, of at least £100, for filing the Tax Return late.
The deadline for submitting your Tax Return online is 31 January following the end of the tax year.
There are a number of reasons that you may have to complete a Tax Return. In many cases, a Tax Return may no longer be necessary, even though it is still requested by HMRC. Seek professional advice from us. We offer a free, initial consultation and can help you determine the best way forward.