...tax returns...

The personal tax year runs from 6th April 2007 to 5th April 2008. Self assessment tax returns are issued immediately after the year end so the latest tax return issued on 6th April 2007 relates to the tax year 6th April 2006 to 5th April 2007.

Penalties

Personal tax returns must be filed with HMRC by 31st January in the year after it was issued. Failure to deliver a personal tax return will normally result in a penalty of £100. If the return is still outstanding at 31st July then a further penalty of £100 is payable. If the return is not filed by the next 31st January then penalties will increase further. If the eventual liability is less than £100 then the penalty is set to that amount. If the tax due is paid in full by the due date then the penalty is set to zero.

Interest for late payment

Personal income tax is due for payment by 31st January. Late payments of income tax will be subject to interest. This is charged at a rate which is close to the Bank of England base rate. Payment of prior year liability after 28th February is subject to a one off 5% surcharge.

Possible information required to complete your Self Assessment tax return...

Employees:
If you leave employment part way through the tax year a form P45 should be issued which shows your taxable earnings and tax deducted. You may have more than one in a tax year. If you are employed at the tax year end of 5th April, then you should be issued with a form P60 which shows your taxable earnings and tax deducted. If you received taxable benefits from your employer then you should receive a form PIId. Taxable benefit examples are, company car, company van and private medical insurance.

Self Employed:
Books and records showing business transactions throughout the accounting year. For an exhaustive list, please contact Mead Turner & Co. Ltd.

All tax payers:
  • Statements showing interest received from banks, building societies and other savings institutions.
  • Warrants from private and public companies and other savings institutions showing dividends received.
  • Details or rental income and expenditure.
  • Details of any foreign income.
  • Details of any other unearned income.