If you need to file an SA100 form, better known as a Self Assessment Tax Return, then you should be aware that the online deadline of 31st January 2018 is fast approaching.
Most people pay their taxes through the Pay As You Earn system and therefore do not have to file a tax return. However, if you have a tax liability or you have been issued a notice by HMRC about requiring a return, then you will need to file a Self Assessment form.
There are anumber reasons why you may need to file a tax return, which include:
- If you are self-employed,or a company director
- You receive rental income
- You have received income from a trust or estate and further tax is due
- You or a partner receive child benefit and your income is greater than £50,000
- If you have sold an asset that you have held for investment purposes, such as a rental property, or shares
These are just some of the more common examples, and so there are many scenarios where you may have to complete a tax return.
In recent years, HMRC have become tougher on those who fail to file, file late, or make deliberate mistakes on their return, with an astounding £1.4 billion collected from investigations into self-assessments in 2016/17, a significant increase in the £856 million collected in 2015/16.
In addition, the number of penalties for ‘deliberate errors’ on tax returns went up by 19% in 2016/17 compared to the previous year, totalling 34,000 cases.
With the heightened scrutiny imposed on taxpayers by HMRC, a clear message is being sent out: file your assessment correctly and pay what is owed, or face the consequences.
If you need support with getting your tax affairs in order then get in touch with us, and one of our advisors will be happy to speak with you.