This year, the tax returns have increased in length to include sections for the Higher Earners Tax Charge for Child Benefit.
This adds yet another complication to the already complex tax returns required by HMRC.
If you have been sent a tax return by HMRC, this must be completed by 31 January 2014 online to avoid an automatic £100 late filing penalty. If you wish to file your return by paper, this deadline is shortened to 31 October 2013.
If you have not been sent a tax return and any of the following circumstances apply, you will need to register with HMRC before 6 October 2013 for a tax return:
- Total income over £100,000
- Self-Employment/Partnership income
- Rental income
- Untaxed income
- Savings income over £10,000
- Income over £25,400 and aged over 65
- Income over £50,000 and child benefit received after 7 January 2013
- Capital Gains made
The self-assessment system in place for collecting income tax places the onus squarely on the tax-payers shoulders for notifying HMRC of their requirement to complete a tax return.
If you fall into any of the above categories and HMRC have not issued a notice to file a tax return, failure to notify them could result in a penalty of up to 100% of the tax due for the year.
Tax returns are becoming more complicated to complete each year, if you require any assistance with completing your return, please contact Karen Robinson (email@example.com) for a quotation.