Do you need to complete a tax return?

HMRC manual page EM4551 clearly states that unless you have no tax or gains and sufficient tax has been deducted at source (PAYE for example), there is no requirement to complete a tax return unless you are liable to child benefit charge.

Who are the likely people to complete a tax return?

  • Higher rate tax payers so those that need to additional taxes on their dividends.
  • Those that have rental property.
  • Those that are self-employed or CIS contractors.
  • Partner of a partnerships

If a tax return is required here are a few handy tips to assist you in completing your return:

  • You’ve missed the deadline for completing a paper tax return (it was 31 October) you will have to complete a return online now. That means you’ll need a log-in for the HMRC website.
  • If you’ve done this before you are fine as you’ll be already registered. But, if you haven’t registered before you need to do it fast. It takes up to seven working days to receive your activation code in the post and you can’t file your tax return without it.
  • The tax return deadline is 31 January for on-line filing
  • If you are self-employed or within the CIS scheme then you need to complete a CWF1 form. This will trigger HMRC to issue a UTR (Your reference to complete a tax return)
  • Before you start trying to complete your form make sure you have all the paperwork you’ll need to hand. You will need: a P60 form from your employer showing your income and the tax you’ve paid on it; a P45 if you have left a job within the tax year; a P11D or P9D detailing benefits and expenses; plus details of interest on bank or building society accounts, dividends from investments and any other income you receive.

If you’re unable to file your return on time

If you are unable to file a return on time or you have failed to notify HMRC in time to complete a tax return, then HMRC have introduced the property let campaign that enable individual’s with rental income to declare their income. The penalties are fair less aggressive then self-assessment.