| A tax return is a form that must be filled in for | | | | file. It also applies to people who make a claim |
| the Inland Revenue (now HM revenue and | | | | outside a tax return. If you are newly |
| Customs) with details of things like your income. | | | | self-employed it is not enough simply to file a tax |
| From the tax return, the amount of tax you are | | | | return by October 31 for the tax year in which |
| liable for is calculated. | | | | you became self-employed. You must tell HMRC |
| If a tax return is issued you have a legal liability to | | | | that you have started to work for yourself within |
| fill the thing in. If not you will have a £100 | | | | three months of doing so - you face a fine of |
| penalty issued. Those individuals who complete | | | | £100 if you don't. Further, at death, the |
| returns using software are sent a notice advising | | | | executor of your estate must also file an Estate |
| them that a tax return is due. If a taxpayer is | | | | Tax return. |
| not issued with a tax return but has tax due they | | | | HMRC have 12 months from the date of filing the |
| should notify HMRC who may then issue a return. | | | | return in which to open an enquiry, provided that |
| Preparing a tax return is one of those things we | | | | the tax return is submitted by the applicable |
| tend to build up in our minds as a big deal, when it | | | | deadline for the method used. If a return is |
| doesn't have to be. It's like painting the living room. | | | | submitted after the deadline for that method, |
| Prepare and lodge your own tax return | | | | HMRC have up to and until the quarter day |
| electronically. | | | | following the first anniversary of the date the |
| A tax return is sometimes required for other | | | | return was filed, in which to open an enquiry. |
| reasons, for example to check if the correct tax | | | | HMRC may sometimes refer to such cases as |
| has been paid overall. So if you are sent a tax | | | | 'investigations', in order to distinguish them from |
| return, you must fill it in and send it back even if | | | | enquiries pursued under the S9A powers. In such |
| you believe that you have no extra tax to pay. A | | | | cases HMRC have to rely on the information |
| tax return is a document filed with HMRC that | | | | powers in TMA70/S20 to support the |
| declares a taxpayers liability for being taxed, | | | | investigation or seek a Regulation 10 notice |
| based on their yearly income. Three outcomes | | | | (General Commissioners (Jurisdiction and |
| are possible from filing a tax return: either the | | | | Procedure) Regulations 1994 - SI1994/1812) from |
| taxpayer has either been charged too much or | | | | the Commissioners in an appeal hearing. HMRC's |
| too little for their income, or they have been | | | | local office structure has been dismantled but the |
| charged the correct amount. A tax return is a | | | | new structures do not appear to provide |
| form on which you are asked to report your | | | | adequate support mechanisms. There is little |
| income and capital gains, and give details of reliefs | | | | doubt that this issue is the biggest single cause |
| and allowances claimed, for a particular tax year. | | | | for concern among tax technicians and |
| The tax year runs from 6 April to 5 April, and the | | | | accountants, who represent the largest number |
| tax return covering the year ended 5 April 2008 | | | | of qualified tax advisers in the UK, many of |
| is sometimes called the '2008 tax return', or the | | | | whom deal with HMRC on a very regular basis. |
| return for 2007/08.It applies to taxpayers who | | | | Remember that if you do file your tax return on |
| are identified as requiring a tax return and who | | | | time and do not breach rules you are far less |
| are issued with a notice to file or a paper self | | | | likely to attract the attention of the HMRC |
| assessment tax Return incorporating a notice to | | | | investigators. |