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Everything you need to know about your tax return

The number of self-employed workers in the UK is at a 40 year high, according to a report from ONS. The economic downturn in 2008 encouraged many workers to forge their own paths. Nine million people are expected to fill out a Self Assessment tax return this year. Ensuring tax returns are completed correctly and on time incredibly important as you may receive a penalty for late returns.

Not sure whether you need to fill in a tax return?

You’ll need to fill in a tax return if you are:

• Self-employed, a business partner, or director of a limited company;
• An employee or pensioner with an annual income of £100k or more;
• A minister of religion;
• A trustee or representative of someone who has died.

or;

• If you have a pre-tax investment income of £10k or more;

You’ll also be sent a tax return if:

• You have untaxed income, e.g. from investment, land or property, or from overseas;
• You make capital gains above the annual exempt amount (£11,000 for 2014-15, £10,900 for 2013-14);
• You’re a pensioner over 65 who gets reduced age-related allowance

If you receive a Self Assessment tax return from HMRC, you are legally obliged to complete and submit it, either by post or by filing a tax return online.

If you miss the deadline for your tax return, you may be liable to pay a penalty and you might even have to pay interest and surcharges on any tax you owe. To avoid penalties, it’s best to complete and send your tax return well in advance of the deadline, which is 31st January.

The HM Revenue & Customs has made the process easier than ever, allowing you to complete and send your tax return from the comfort of your own desk using the straightforward, online interface. The website also gives you the opportunity to find your online activation code or request a new code if yours has been lost, collect your receipts and separate business expenses from income and start your Self Assessment.

As a self-employed professional, the potential risks of filing a late tax return are not worth taking. Head over to the HMRC website to find out more.

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This was posted in Bdaily's Members' News section by Teads .