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