Do I have to do a Tax Return?

Published on: 23/02/2015

do i have to do a tax return?

HM Revenue and Customs (HMRC) recently released figures in respect of the 2014 tax returns, highlighting such statistics as:

  • 11.13 million tax returns issued
  • 4.28 million filed in January alone
  • 890,000 tax returns not filed before the deadline

The final figure is quite eye catching.  Each will be issued with a late filing penalty of £100 (which will rise further if the return continues to be unfiled, see here).

Most of the time, a tax return is issued for a specific reason, such as the taxpayer being self employed.  It used to be the case that, if HMRC issued a tax return, it had to be completed, even if it was nil.  However, HMRC have become a bit more accommodating over the last couple of years.  If you’ve been issued with a tax return and one is not required, you can ask for it to be cancelled.

To give an example; if you have a buy to let property, then you must complete a tax return. If that property is then sold, then you will no longer have property income and should not have to complete a tax return.  However, HMRC may still issue returns.  If that is the case, then you can tell HMRC that there's no reason for you to complete a tax return.

However, our advice as always is: if you’ve received a tax return, deal with it sooner rather than later.  It’s a lot less hassle and causes less anxiety getting the return cancelled before the deadline date rather than waiting for a late filing penalty to land on your doormat.

Please note: posts were written at a specific time and reflect the rules in place at that time, which may no longer be relevant. Furthermore, the posts are generic in nature. We cannot accept any responsibility for any losses in respect of actions taken on the strength of this generic advice. We would advise you to seek up to date advice which is relevant to your circumstances.
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