Do you need to complete a tax return?

I have had a decent week meeting potential new clients all around London. I have been dealing with quite a number of city bankers recently and a question that I often get asked is "do I need to complete a tax return if my I am taxed at source"? I thought it would be a good idea to simplify the answer in this week’s blog post.

If HMRC has written to you with a request to complete/file a tax return then quite clearly you need to complete one aside from that obvious one here is a list of the most common situations where HMRC require you to register for self assessment:

1. Self Employed
2. Company Directors
3. Income is above a certain level from savings, investments and property
·         £10,000 or more income from savings and investments
·         £2,500 or more income from untaxed savings and investments
·         £10,000 or more income from property (before deducting allowable expenses)
·         £2,500 or more income from property (after deducting allowable expenses)
·         annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
·         income from the estate of a deceased person on which tax is still due
4. Income from Overseas
5. Claiming certain reliefs such as EIS/VCT
5. Capital Gains arising
6. Trustees
7. Aged over 65 and have a reduced age allowance
8. YOU EARN ABOVE £100,000

This list is not exhaustive but provides you with the most common scenarios.

The one I want you to focus on is number 8. The majority of people I come across that earn above 100k and are taxed at source do not complete a tax return because they believe they do not have to register. Well you do!! Register ASAP to avoid further penalties and surcharges.

Last week I helped my new client register and file his tax return before the end of the month managing to avoid him an additional 5% surcharge.

If you know of anyone earning above 100k or people in the banking industry that may benefit from a chat with me please pass them on my details as I would love to help them.

Don't wait for HMRC to find you bring your tax affairs up to date today

Thank you for reading my blog and have a great weekend



Mitch the Tax Man