Get your UK taxes right first time!
Officially if you are a resident of the United Kingdom, then you only have until January 31st to file your taxes from the previous year’s earnings. Most people will get their self-assessment tax return completed on time and we hope to share with you how to get it done. We will give you the outline of how to file your taxes correctly so that you do not have to be fined a late fee and the possibility of facing other penalties. Millions of taxpayers will get their returns filed on time and we want you to be one of them. People who have straightforward tax affairs, who pay their taxes directly with the PAYE program don’t have to self-assess. However, if you are a taxpayer with more complexity to your taxable income then things will be different. We will outline all the details of what you need to know on how to file your UK tax return correctly. Keep on reading below as we expose the various elements you will need to know about.
For individuals that are self-employed or those that have taxable gains to declare such as property, landlords are required to submit a self-assessment tax return. This also includes workers who earn over £100,000 a year and also directors of companies. If you are a taxpayer with a yearly income of more then £50,000 who gets child benefit will also have to complete a return to have a portion of the benefit repaid. If you are a couple where one person’s income exceeds £60,000, then the full child tax benefit is reduced through self-assessment.
There are two options for filing your tax return and they include using the paper format or using the HMRC website’s self-assessment tool. If you have not yet signed up for an online HMRC service account you will need to send a request. Be prepared to wait 7-10 business days to receive an activation code through postal mail. Furthermore, to activate your online account you will need your 10 digits unique taxpayer reference number. If you have already signed up for self-assessment you will be able to find the number on the paperwork that is relevant.
In order to get your tax return completed, you will need certain pieces of employment information and paperwork. You will need all your documents that relate to your employment income including your P60 form, which summarises your income and tax deductions you were issued. You will also need to include your P11D form which gives the full details of the expenses and benefits that are paid to employees. If you do not have this paperwork then, by all means, contact the payroll department of your workplace to gain access to these papers. They are necessary and we highly advise that you hold on to them. You will also be required to include all details of other personal income, investments as well as your taxpayers’ national insurance number.
If you worked offshore for example onboard a ship, cruise-liner or super-yacht, you may have been paid cash-in-hand rather than through a payroll and therefore will need to file your income and expenses with seafarers tax accountants who specialise in filing returns for non-resident workers.
When you fill out your online assessment on the official HMRC website you will notice that some of the details are filled out already. The self-assessment tool will include information such as state pension, underpayments and other national insurance contributions. The sole purpose of the self-assessment tool is to be able to paint a picture of your individual taxable income and any financial gains you have made. You are required to file all income from your employer or self-employment. This also includes things such as foreign income that was earned, company dividends, interest from bank accounts, income from any rental property or monetary gains made from a trust or settlement and this also includes any taxable benefits from either employers or the government itself. If you have made any capital gains from disposing of assets that include Stockmarket shares, land and property must be disclosed on your tax return.
Knowing how to file your UK tax return correctly is very important as a resident of the United Kingdom. If you file your tax assessment late then the HMRC will charge you a late fine of £100 and the penalties can add up and cost you even more. Officially you can get all the help and advice you need when it comes to completing your taxes. You can visit the official website which stores plenty of information by visiting: gov.uk/self-assessment-tax-returns. There is also a free helpline that is available from 8 am to 8 pm on weekdays and from 8 am to 4 pm on Saturdays and from 9 am to 5 pm on Sundays. The helpline number is 0300 200 3310 and the staff on the line are very helpful.
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