Tax returns – do I need one and what information must I keep?
Under self assessment anyone who has a tax liability must inform the Revenue and pay the additional tax. For the majority of employed taxpayers this does not apply as tax is collected by their employer every month and any adjustments are made in their tax code. The opposite rule however does not apply as the Revenue is not obliged to tell you if you have overpaid, so if you are in doubt it makes sense to check which you can do on the Revenue website or ask your accountant to do. Some people such as directors of companies and the self employed must complete a tax return.
So if you need to complete a tax return what information do you need? A list of the common items follows:
- End of year P60 from your employer (you should have this by May each year) and any pensions or benefits received
- Benefit in kind form P11D from your employer (by July)
- Details of interest received on all current and savings accounts
- Details of all dividends received (including those from your business)
- Profits from your trade if self employed
- Details of rental income net of relevant expenses
- Details of any capital gains on sale of assets
You can also get tax relief for some items:
- Personal pension contributions
- Payments made under gift aid
- If employed certain expenses incurred wholly, exclusively and necessarily for your employers business may be allowable (this includes 40p/mile, for business mileage upto 10k miles, even if you are paid less than that)
The easiest way to collect these is to put them into an envelope as they arrive then you can complete your tax return as soon as you have collected everything. This list includes all of the more usual items however you should ask your accountant if you have any specific questions.
We hope you find the contents of this blog useful, you should of course always seek professional advice for your specific needs. Alastair Wood, AW Accounting – Accountants who “speak your language”
