The importance of knowing about tax returns

For the millions of people who pay their own tax directly (rather than from their monthly pay), the end of the year means signals one thing. It’s time to complete your tax return for the 2016-17 tax year.

You have to work out what you have earned over the previous tax year, from April 6, 2016, to April 5, 2017. Include any relevant deductions such as travel, stationery, stock and materials.

If you are self-employed, complete a return and pay your own tax directly. The same applies if you are a business partner, a director of a limited company.  Pensioners and people with an annual income of £100,000 or more must also pay their own tax directly.

The deadline for postal returns has passed. The deadline for online returns is 31 January 2018.

If you file your tax return online and also have earnings taxed under PAYE, you might be able to have outstanding taxes collected directly from your pay, provided you completed your online return by 31 December 2017. Any tax payable would be paid over 12 months, rather than a lump sum.

If you are late filing, you will receive a £100 fine. The longer you leave it, the bigger the fine gets.

TNT Business

Photo Credit: stevepb

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