Do I Need A Tax Return?

Q: My tax affairs are quite simple in that I am employed and my only other source of income is approximately £2,600 per annum from a property that I have a half share in. Do I have to file a tax return?

A: Many individuals with relatively simple tax affairs are now able to deal with various issues with Her Majesty's Revenue & Customs (HMRC) by telephone and this can dispense with the need to file an annual tax return.

You can notify HMRC of any changes in personal circumstances, including changes which may affect any claims to personal allowances you are entitled to. You can also notify HMRC by telephone of changes to your employment or self-employment status and advise them of any untaxed income, up to a limit of £2,500.

Where untaxed income exceeds £2,500, it is necessary for the individual to complete and file a self assessment tax return. As your rental income is £2,600, you should therefore contact your local tax office and ask them to issue a tax return form to you.

Before completing your tax return form you should consider seeking advice from an accountant. They will be able to review your circumstances to ensure that you claim any reliefs and deductions available, in order to minimise your liability to tax.

The Tax Man Wants To Top Up Your Wages

Many people who are entitled to a cash increase in their income are missing out simply because they assume they are not entitled to Working Tax Credit (WTC), HM Revenue and Customs (HMRC) have said.

HMRC has therefore set up an online calculator enabling anyone who thinks they might be eligible for WTC to quickly find out for sure whether they are likely to be entitled - and by how much.

The average amount of WTC unclaimed is £1,600 a year so some people will qualify for significantly more.

Working Tax Credit is payable to people who are in work and on a low income, and you don't have to have children to qualify.

Many people who fail to claim are:
*in the 50-plus age group,
*have experienced a fall in income.

The Financial Secretary to the Treasury, Stephen Timms, said "Tax credits are already benefiting hundreds of thousands of families without children. We recognise that these are challenging times and Working Tax Credits are there to help."

"I would urge anyone who thinks they might be entitled to this money to go on-line and find out for sure." says Cheryl Hopkins

Anyone with queries about tax credits can check online at www.hmrc.gov.uk/taxcredits or, to make a claim, call the Helpline on 0845 302 1415.