Date posted: 6th Apr 2021
On 6 April 2021, we enter a new tax year. You may soon be receive a request to complete a 2020/21 Tax Return from HMRC (either via the post or via your HMRC account). The notification to complete a Tax Return is a legal requirement and should not be ignored.
Similarly, if HMRC have not issued you with a Tax Return but you are required to complete a Return, you are legally required to notify HMRC.
There are a number of reasons why you may be required to complete a Tax Return, such as:
- You have income from self-employment.
- You are a partner in a partnership.
- You receive rental income (even if you do not make a profit!).
- You receive more bank interest than your allowance entitlement.
- You receive dividend income in excess of £2,000.
- You earn over £100,000.
- You earn over £50,000 and your household receives child benefit.
- Your pension contributions (employee and employer) are higher than your pensions allowance.
- You have sold an asset such as land, a business, shares or crypto-currencies and you need to pay capital gains tax.
Please do not forget that sales of residential properties are required to be reported within 30 days of sale, with any capital gains tax paid at the same time. It will also be necessary to report the gain on the appropriate Tax Return too.
If you require assistance with your Tax Return, our tax compliance team would be delighted to help you. The team can be contacted here.