The list below sets out the main reasons why your client would need to fill in a tax return:
They were self-employed for any part of the tax year.
Partner in a business partnership
They were a partner in a business partnership for any part of the tax year.
They were a company director (unless this was a non-profit organisation and they didn’t receive payments or benefits).
Savings and investment income
They received £10,000 or more in the tax year.
They received £2,500 or more in the tax year.
Income from Property
They received income from property during the tax year of £10,000 or more (before deducting allowable expenses) or £2,500 or more (after deducting allowable expenses).
Foreign income that is liable to UK tax:
They received any foreign income that’s liable to UK tax.
Employment and wish to claim expenses or professional subscriptions
They were employed or a director. They have expenses or professional subscriptions of £2,500 or more to claim
They received income from all sources in the tax year of £100,000 or more.
Bankruptcy / Sequestration / Individual Voluntary Arrangement
They may need to fill in a tax return for the year in which they were declared bankrupt, sequestrated or entered into a voluntary arrangement.
High Income Child Benefit Charge
If your client’s income is more than £50,000 and your client or their partner received Child Benefit, they may need to fill in a tax return.
Don’t miss tax credits renewal deadline Individuals who were claiming tax credits for 2012-13 should be receiving a “Renewing your tax credits – Getting it right” pack.
It is vital that you complete the Annual Review form for the year ended 5 April 2013 and send it to the Tax Credits Office (TCO) Preston before 31 July 2013. Failure to do this will result in your tax credit payments being stopped and you may have to pay money back.
Claimants should note:
If you have not yet filed your 2011/12 tax return the self assessment deadline is the end of this month (31st Jan), if you miss this date by even a day you will incur an automatic £100 penalty regardless of the tax you owe. We can take the worry and stress away for a very competitive fixed fee, we offer weekend and evening appointments and free tax advice throughout the year, we will also deal with HMRC on your behalf, leaving you free time to concentrate on running your business.
HMRC has resumed its business records checks and is in the processing of writing to businesses all over the UK advising that they will receive a phone call from HMRC during which they will be asked a number of questions, their answers will be scored and if not satisfactory a HMRC visit will follow, this is something which should be taken seriously and I would recommend speaking to us or your current accountant before making the call. It is possible for the accountant to call on the clients behalf however this automatically reduces your scoring due to the way the system is setup therefore this is perhaps not the best option in most cases.
see recent article below on the subject
According to the government the Universal Credit will simplify the current system of Department for Work and Pensions payments to unemployed people and low-income earners. It consists of a standard allowance and five other potential elements, which are:
businesses. As it stands, if you are in business for yourself, you will need to submit an additional online report on a monthly basis. Your benefit payments will be suspended if you don’t claim your Universal Credit within seven days of filing this. The concern is that this timeframe is too tight given the inherent pressures many self-employed people are under. Please call us for further information
Licenced Accountant in Brighton