Don’t get caught out.

Recently, a former nightclub dancer was confronted with back taxes and penalties of over fifty seven thousand pounds (£57,000) after years of non-declaration; apparently, she didn’t know that non-British citizens and students paid income tax. The non-payment issue only came to light when she applied for citizenship and needed to prove her tax status.

If you are currently not filling in tax returns because Jack down the pub says you don’t have to,  note that you, not Jack, will be the one facing the music if you are deemed liable to UK income tax.

Just so you are in the know, below is a list of events that may require notifying the HMRC of the need to complete tax returns. If you need help with any, I’m only a phone call (07803 704 496) or an email away.

Here goes:

1. You’ve been made or are about to be made a company director though no income has been received.
2. You receive dividends.
3. Your annual income is over £100,000.
4. You have been made a partner in a business.
5. You have overseas income.
6. You do bits of paid work on a freelance basis.
7. Your annual income is over £50,000 and child benefit is being claimed.
8. You are a non-resident with a UK income.
9. You buy items and then resell on auction or other such sites with the aim of making profit.
10. You sold a second home or other assets on which capital gains tax is due.
11. You receive rent from your property.

PLEASE NOTE that the above list is not exhaustive so do get in touch if some guidance with your particular situation is required. Should you decide to go down the d.i.y. route, the HMRC forms required can be accessed by clicking on a relevant link below:

• Self Assessment
• Registering a new business
• Registering a partner in a partnership

[Author: Phoenix, qualified accountant, London, UK. 05 September, 2016]