With the Self-Assessment deadline looming I thought I would bring you some useful information on tax returns.
So what is a tax return?
A ‘Self-Assessment Tax Return’ is an annual form used by an individual to report their total income and business expenses to HM Revenue and Customs (HMRC). The reason why the form is completed is so that any tax that is payable or overpaid in the period can be calculated.
Who needs to complete a tax return?
Not everyone needs to fill out a tax return.
A large proportion of people will have their tax deducted by an employer or government agency that will pay this over to HMRC on their behalf.
Tax returns are generally required by individuals where they receive income that is not taxed as source, for example self-employed, someone who receives rent from a property, a director of a company, a higher rate tax payer with dividend or bank interest.
What deadlines do I need to know?
The 2011 Tax Return (covering the period 06 April 2010 to 05 April 2011) needs to be submitted electronically no later than 31 January 2012. All tax due should also be received by HMRC by 31 January 2012.
If you think you may be due a refund then submitting your return early can get the refund to you quicker.
Of course I have only just scratched the surface of tax returns but hopefully I have made it all a little clearer. If you do have any additional questions, feel free to call me at the office on 0116 2423400
Rachel Priestley ACCA BA (Hons)
0116 2423 400