TOP 5 MOST POPULAR SELF ASSESSMENT TAX RETURN QUESTIONS

With the 31 January Self-Assessment deadline approaching, the top 5 most popular Self Assessment questions that were identified by HMRC as being the most asked by customers to compete their returns are outlined below.

Top 5 Most Popular Self-Assessment Questions

 

  1. Do I need to fill in a tax return?

You’ll need to complete a tax return if any of the following apply, in the last tax year:

  • You were self-employed. If so, you can also deduct allowable business expenses.
  • You got £2,500 or more in untaxed income, for example from tips or renting out a property.
  • Your income from savings or investments was £10,000 or more before tax.
  • Your income from dividends on shares was £10,000 or more before tax.
  • You made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax.
  • You were a company director, unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car.
  • Your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit.
  • You had income from abroad that you needed to pay tax on.
  • You lived abroad and had a UK income.
  • Your taxable income was over £100,000.
  • You were a trustee of a trust or registered pension scheme.
  • You had a P800 from HMRC saying you didn’t pay enough tax last year – and you didn’t pay what you owe through your tax code or with a voluntary payment.
  • Your State Pension was more than your Personal Allowance and was your only source of income, unless you started getting your pension on or after 6 April 2016.

Certain other people may need to send a return (for example religious ministers or Lloyd’s underwriters). You usually won’t need to complete a self-assessment return if your only income is from your wages or pension.

  1. How do I know how much tax I owe?

When you fill in a tax return online, it automatically works out and displays how much tax and Class 4 National Insurance contributions you owe. It will also allow you to print your calculation.

  1. How do I register to send my return online?

You can register on GOV.UK or assign an Accountant as your Agent to calculate and complete your tax return for you.   During registration you will be set up with a user ID and password.  HMRC will then send you an activation code by text. Once you’ve activated the service, you can then complete your self-assessment return.

  1. I’ve lost my User ID and password, what do I do?

If you have problems signing in, there’s a number of ways to reset and gain access to your tax account. Follow the online prompts to get a reminder of your login details or reset your access code.

To confirm your identity make sure you have your National Insurance number, and other forms of ID such as your passport, P60, tax credits letter or payslips.

  1. When does my 2016/17 return need to be completed?

Your online Self-Assessment tax return needs to be in by 31 January 2018, otherwise you will receive a £100 fine.

Why Your 2016/2017 Self-Assessment Return Will Be Different to Previous Returns?

The Self-Assessment return for 2016/17 will be the very first return with Dividend Tax. Dividend tax was introduced by the former Chancellor of the Exchequer; George Osborne in the 2016 Budget. Key changes from 6th April 2016 are,

  1. The Dividend Tax (10%) Credit will be abolished.
  2. There is a Dividend Tax Allowance of £5,000.
  3. The new rates of tax on dividend income above the allowance will be 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.

You are more likely to therefore, have “Dividend Tax” and “Payment on Account” on your 2016/17 Self-Assessment return

 

 

For more information and advice, contact Mico Edward Accountants Today: info@micoedward.com

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TOP 5 MOST POPULAR SELF ASSESSMENT TAX RETURN QUESTIONS