News: July 2012
Do you have to file a tax return?
Somewhat surprisingly, HMRC are trying to reduce the number of tax returns they get from individuals. In particular they have published their unofficial list of those for whom they will normally ask for a tax return, so that if you are not on that list for any particular tax year you can relax and not bother with a tax return at all!
That is not strictly true, however, as even if you do not come within the list you still need to declare any income or capital gains where a tax liability arises and the tax paid at source is not sufficient to cover the full amount due.
Leaving that aside, HMRC have indicated that they only want a tax return if you are within ANY of the following categories:
- self-employed or a partner in a business at any time in the year
- a company director
- receive income of over £100,000
- receive more than £10,000 in savings and investment income
- receive income from letting out property
- receive foreign income liable to UK tax
- employee claiming expenses or professional subscriptions of at least £2,500