How long should I keep tax records for?
Everyone must keep all records of any income and tax paid for at least 22 months after the end of the tax year to which they relate to. If you are self-employed, a business partner or let property, you must keep all records for t least 5 years 10 months after the tax year end to which they relate.
How far back can I make a claim if I feel I have paid too much tax in a previous tax year?
If you feel that you have overpaid tax in previous years, you are welcome to contact your local tax office (please contact your HR department for their address) for income earned for up to 6 years prior to the current tax year. Please note however that all records may be correct or you may have underpaid tax. It is advisable to seek independent financial advice before undertaking any action.
What is Self-Assessment?
This is a way to calculate the amount of tax you should have paid for any tax year.
Who has to complete a Self-Assessment?
Under current Inland Revenue guidelines, HMRC will require a self-assessment form from you if you are:
- Self-employed or in a partnership
- A company director
- Receiving rental income from property owned
- Receiving any further income that cannot be taxed through the PAYE system
- Receiving regular income from a trust, settlement or estate
You may still need to complete a self-assessment if you are an employee and have:
- Annual income from savings and investments of £10,000 or more (before tax)
- Annual income of more than £100,000
- Tax due that cannot be reclaimed in the following years PAYE tax code
- Untaxed income of £2,500 or more annually
If you receive a form through the post, you are under obligation to complete it even if you do not fall into any of these categories or you risk a fine.
How can I file?
You can either complete the paper form or the HMRC has an online filing system that works in exactly the same way.
Important dates
30 September – The cut-off date is you want the Inland Revenue to calculate any outstanding monies owed and want any tax due to be reclaimed through the PAYE system the following tax year
31 January – The cut-off date if you are calculating your tax yourself. If your return is not received by 1 February, an automatic £100 fine is incurred (but may be amended as any fine cannot exceed the amount of tax due).
Useful websites:
The above gives brief details about self-assessment and a full information pack can be found on the HMRC website (http://www.hmrc.gov.uk/pdfs/sabk8.htm). All information is correct at the time of publish and should be used for information purposes only. Front of House Magazine is not responsible for the content on external links. All links are free to use and are checked by us for authenticity and accuracy where necessary. We are not able to provide financial advice to individuals or companies as we are not governed by the FSA.
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