Has your financial position changed in the past year? Have you retired, sold an asset or started a new venture. Are you aware that you may need to let HMRC know that you need to complete a tax return?
Do any of the following apply to you since 6 April 2015.
- Started to rent out a property
- Sold a property that is not your main home
- Started a new business, even part-time around another job.
- Do you earn more than £50,000 and do you or your partner receive child benefit?
- Are you in receipt of dividend income, and a higher rate tax payer?
- Have you become a company director?
If any of these are relevant for the year ended 5 April 2016, they fall into the 2015/16 tax year, and you have until 5 October 2016 to notify HMRC that you need to complete a tax return.
This 2015/16 tax return should be:
- With HMRC by 31 October 2016, if you choose to file a paper tax return.
- Or electronically filed by 31 January 2017.
If you owe tax for 2015/16, then this should be paid by 31 January 2017. If your tax liability under self-assessment is more than £1,000 you may have to make payments on account of tax for 2016/17.
Are you a higher rate tax payer? Do you pay into a personal pension scheme out of your taxed income? If so, are you claiming back the tax relief on your contributions?
Some taxpayers assume they will receive higher rate tax relief automatically. However, this is not the case, and the onus is on the tax-payer to claim the tax relief and what HMRC owes you. A higher rate tax payer contributing £2,000 per year into a personal pension scheme can claim tax relief on this contribution at 20%, which is £400. If you don’t claim it, you will lose it. At present you can go back and claim tax relief for the past four tax years (up to and including the tax year ended 5 April 2013).
Did you know that higher rate tax payers can also receive tax relief on donations to charity under Gift Aid. Again the relief due is 20% of what you have given to Charity over the tax year.
All tax payers can claim tax relief for subscriptions paid to professional bodies, if you’re employer does not reimburse you for this expense. Search for a form P87 on the HMRC website.
If the thought of tax is bewildering, help is at hand. Please give me a call now for a free initial consultation.