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Published in: Articles

Reasons you may need to complete a tax return

(Written by Michelle Clark, Enrich Tax Consultancy*)

Tax returns – one of those things that we’re aware of as a vaguely important, very grown-up thing to do. Chances are you think of a tax return as something that property landlords or very high earners need to complete. But there are many reasons why we might need to complete a tax return – and having an awareness of when these arise will stop you getting caught out and risking a tax penalty in the future!

So, we turned to tax expert Michelle who runs Enrich Tax Consultancy to give us the lowdown on when we need to be doing a tax return….

  1. You may recently have started your own business. This could be as a sole trader or a partner in a partnership or you may have become a director of a company.
  2. You have savings and/or investment income more than £10k in the tax year
  3. You have income from land and property. This could be a property you let or a room you rent in your home.
  4. During the tax year you have made pension contributions in excess of your annual allowance
  5. You or your partner receive child benefit and your adjusted net income is over £50,000.
  6. You have capital gains where:
    1. You have given away or sold assets worth £49,200 or more for 2021/22; or
    2. You have a capital loss, but your gains net of any losses is more than the annual exemption (£12,300); or
    3. You have no losses to claim but your gains are more than the annual exemption; or
    4. You need to make any other capital gains tax claim or election for the year.
  1. You may want to claim income tax relief on things like VCT or EIS investments, pension contributions or charitable donations.

Whatever the reason, it is important to notify HMRC on time. HMRC should be notified by the 5th of October following the tax year in question if you have not completed a tax return for the previous year.

You should ensure that your return is filed on time. You have until the 31st of January following the tax year you are reporting to submit the tax return online.  If you wish to submit a paper return this is brought forward to the 31st of October following the tax year.

Thanks to Michelle for her wisdom!

If you think any of the above might apply to you, you can contact Michelle at michelle@enrichtc.com

V1 December 2021

* Enrich Tax Consultancy and SpringGen Advice Ltd are part of The Financial Planning Group. The Financial Planning Group is home to a selection of Financial Planning firms across Scotland. These currently include Acumen Financial Planning, Enrich Tax Consultancy, SpringGen Advice Ltd and Loch Fyne Financial.

The information provided in this content is for general information purposes only.  It is not, and should not be construed as financial or tax advice.

Rate of tax, tax benefits and allowances are based on current legislation and HMRC practice and depend on personal circumstances.  These may change and are not guaranteed.

The information provided is based on our understanding of current rules and regulations, which may change.  The impact of any tax changes will depend on individual circumstances.

SpringGen Advice Limited (FCA no: 926966) is an appointed representative of Acumen Financial Planning (FCA no: 218745), authorised and regulated by the Financial Conduct Authority. 

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