Who Need to Fill Self-Assessment Tax Returns in The UK?by Shams Urrehman Accounting Services
UK employment taxes are deducted automatically from the salary of employed individuals. You will also be liable to pay UK income tax on benefits from your employer as well as being taxed on your employment earnings.
Self-assessment tax return in UK is a process of filling out your incomes and tax obligations either manually by sending a UK tax form to the tax authorities or filing it online at HM Revenue & Customers (HMRC) website. Eligible individuals need to send the tax return manually by 31 October or online by 31 January of every financial year. Only specific categories of income earners are required to file these personal tax returns in England.
Every citizen or resident of the UK who is self-employed is expected to fill out their self-assessment UK tax form before the deadline.
Individuals above 65
Individuals over the age of 65 are expected to fill out their tax return if their annual income is in excess of £27000 for the 2016 to 2017 financial year. The limit keeps changing and you will need to confirm with the HMRC self-assessment helpline for the applicable rates in any given year.
Trustees, ministers of religious faith and directors of companies
Ministers of religious faiths and directors of companies are also required by law to submit their tax return. However directors of charitable (non-profit) companies are not required to submit their tax returns. In addition, personal representatives and trustees are also required to file the tax returns.
Tax on income from savings and investments
If an individual receives income in excess of $10, 000 from saving or investments, they are also required to pay taxes. They will need to fill out their returns for amount above £2,500 if their income from savings and investments is not taxed at all.
Individuals receiving foreign income
You are required to submit Personal Tax Return in England if you are receiving any foreign income. The non-residents who are working in UK are also required to file tax return if their income is in excess of a given limit.
Tax on income beyond a limit
You will also need to file returns if your income is in the excess of £100,000. Filling of tax return under this category is also applicable to the individuals who claim relief on venture capital trusts. Individuals seeking claims for professional subscriptions in excess of £2,500 are needed to file their tax returns before the deadline to avoid fines.
Why to hire professionals for income tax return?
If you don’t have time or proper knowledge of complicated tax laws in the UK, then it is better to hire a professional (accountant) to file tax return on your behalf. Professionals have proper knowledge and experience of filing returns to maximize your tax benefits. By filling all the documents correctly and submitting them before the deadline, these expert professionals save your from mistakes and penalties.
Created on Nov 15th 2017 22:21. Viewed 659 times.