Needless Self-Assessment

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Needless Self-Assessment

HM Revenue and Customs (HMRC), say that thousands of taxpayers each year are needlessly filling out self-assessment forms.
Because more than a million people have still not completed and submitted a tax return online by January 30th of this year, HMRC have stated that those who pay less than £ 3,000 in taxes might not need to complete the annual return. Because more and more taxpayers fall into higher tax bracket rates, HMRC expect to see an increase in self-assessment tax returns. However, the organisers said that those who owe only a small amount will not be required to fill out the form and the amount can be included in the tax code to be deducted each pay period during the period 2015-16.

HMRC has been accused of wasting time with people, as it does not make clear what the best ways to pay owed taxes are. Tax practise director Stuart Phillips stated:

“It is very unfortunate that we are sincere in this country when it comes to pay our taxes, but HMRC does not seem to tell people how to do it in the easiest way.”

HMRC said that people whose tax matters are “simple” such as a freelancer collecting through PAYE tax may be able to have up to £ 3,000. However, a spokesman said over the phone that they cannot complete the self-assessment tax return if their tax bill was less than £ 2,500, and that they will be consulted on this individually. This was confirmed by a representative, saying that only those who need to complete a complicated tax declaration would need to submit a return.

The self-assessment criteria

For self-employed workers or for those who are a director of a company, they will have to submit a self-assessment return. If you are a business partner, or have any other source of income that isn’t initially taxed, you will need to fill out a tax return.

Anyone receiving rental income, expenses or income from abroad of more than £ 2,500 will need to contact HMRC to ask for recognition and a self-assessment form. If your income is more than £ 50,000 and you receive child benefit, you will be asked to complete and submit a statement.

For more help, guidance and information on tax, feel free to read The Cheap Accountant for much more today.

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