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1, what is a tax return?
2, who has to complete a tax return?
3, what is self assessment?
4, what information do I put on my tax return?
5, how do I pay my tax?
6, what is a payment on account?
7, what is a short tax return?
8, why should I use taxdoctor to complete my tax return?
9, when is the tax return deadline?
10,what is a UTR number?
A tax return is a form that needs to be completed by certain people to tell HM Revenue about the income they have had during a particular tax year. It brings together income from all sources and will enable HMRC to know how much tax you should pay for that tax year.
Most people don’t need to complete a tax return as their tax will be sorted by their employer under the PAYE system.
Most people’s tax affairs will be dealt with under the PAYE system. This is where your employer will deduct tax and national insurance payment from your gross pay before paying you.
If you’re self employed this wouldn’t happen and that’s why you would need to complete a tax return to inform HM Revenue of your income for the current year so they can take the relevant tax from you.
You are also needed to complete a tax return if you are employed and have another form of income which hasn’t been taxed, such as rental from a property or you have made a capital gain. It’s your responsibility to inform HMRC if you have any income that hasn’t been taxed.
Self-assessment is the name given to the system whereby you as a taxpayer inform HMRC of your income and subsequent tax liability. It doesn’t mean you need to do it yourself and can’t get help from an accountant though! Under the old system the Inland Revenue would inform you of how much tax you owe. Now you tell them, hence the name; self assessment
You tax return needs to show details about all your income and relevant expenditure. IT pulls together your complete financial picture for the year. If you’re self-employed but also have income from a job then they both need to go on. You’ll also need to include details of any interest received from banks and building societies and pensions received, state or private. For a complete list click here.
Your tax is payable by the end of January following the the tax year. So for the 2007/08 tax year the balancing payment need to be made by the 31st January 2009.
A payment on account is a payment made in advance for the forthcoming tax year. You need to pay it if your tax bill is over £500 and you expect things to be roughly the same for the coming year. It is possible to reduce these payments if you feel your circumstances have changed and that your tax wont be as much in the coming year
HMRC have changed the type of returns they send out to some people. Instead of sending our the full tax returns asking for lots of information these are scaled down versions with questions only applicable to the individual in question.
We’ve got a wealth of experience in preparing tax returns for landlords, CIS workers, Self employed and company directors. We know the tax laws inside out and can provide you with a cost effective way of ensuring that you not only comply with HMRC regulations but that you pay the correct amount of tax in the process.
HMRC have a few different deadlines depending on how you prepare and file your tax return.
If you want HMRC to calculate your tax liability for you the deadline is 30th September. If you use our service and we calculate the tax payable and submit electronically you have until the 31st January to submit your return.
UTR stands for Unique Tax Reference, it’s a 10 digit reference number that is assigned to you by HMRC. It’s used on all correspondence and is really important as it’s used to identify you on their systems.
