Don’t get caught out by the taxman due to ever-increasing regulations, is the warning from our Tax Manager, Martyn Bramwell.
Martyn said the systems HM Revenue and Customs had in place were becoming more and more sophisticated.
“With the systems becoming more digitally based with each passing year, the amount of information flowing into them from a wide variety of sources is also increasing.
So it’s vital that taxpayers keep a close eye on their tax affairs in case their circumstances change and they may suddenly find themselves needing to register for self assessment when they have never done it before.”
Martyn said anyone who was unsure of whether they needed to complete a self assessment tax return could use HMRC’s online tool to help them work out what they needed to do, or take professional advice.
“There’s a simple and free to use online checking tool on GOV.UK and if you do need to self-assess, you’ll need to register with HMRC by 5 October. You can also use this tool if you think you may not need to complete one this year too.”
Martyn said there were several circumstances in which taxpayers could suddenly find themselves needing to complete a tax return.
“Maybe you are newly self-employed and have earned more than £1,000, or you have multiple sources of income? Or have you received untaxed income?
Do you earn more than £100,000 a year? Do you own a property that you rent out? Are you a new partner in a business partnership?
There are all kinds of reasons why you may need to inform HMRC about your tax position, and you don’t have to wait until 31 January to file your return – in fact, filing earlier will allow you to find out what you owe sooner so you can budget more easily.”
Martyn said anyone who had given up work or retired, who was no longer self-employed or who earned below the minimum income thresholds may no longer need to do self assessment and they could also use the online checking tool to find out.
“It is important that taxpayers check if they need to complete a self assessment tax return because if you don’t pay the right amount on time or you fail to file a return at all, you could face serious financial penalties.”
DY Tax Manager, Martyn Bramwell