They are saying Sunday was the hottest Father’s day on record and this week it’s going to be scorching and we also see the official start of summer. I always think that the sunshine makes you feel better anyway.
But as everyone starts to look forward to summer holidays, only a little bit of time away is, dare I say it, Christmas! And then comes the 31st January and we all know what that means. Well you do if you are an accountant, its tax return season.
Before I wish the year away and as the sun shines why not also make your accountant’s day and decide to get your paperwork to us sooner rather than later.
You might ask yourself what is the benefit of getting my tax return and paperwork done now rather than later in the year? Let me tell you:
By the 26th June, if you receive tax and or working tax credits you should receive your renewal letters. If you don’t receive anything, you need to contact HMRC to request the renewal notice. If your renewal pack has a red line across the first page and it says “reply now” you need to do this before the 31st July. If you miss this deadline, your tax and or working tax credits might stop and you may have to pay back any money received since the 6th April.
The 31st July is the date on which everyone’s personal tax second payments on account fall due. If we don’t have your information it is difficult for us to plan. Wouldn’t it also be nice if you have over paid tax and you get one of those brown letters from the tax office that nearly everyone dreads, its good news and they are telling you they are giving money back to you?
2016/17 will be the first year a few people will have to pay tax and make payments on account due to the changes in dividends last year, as now only the first £5,000 is taxed at 0%, then basic rate tax payers will now pay tax at 7.5%, higher rate tax payers will pay tax at 32.5% and additional rate tax payers at 38.1% just on dividends alone, let alone any other sources of income you receive.
If you are in employment and you owe less than £3,000 in tax and you want this collected via your coding, your return needs to be submitted before the end of this year. This will also stop the tax office trying to collect payments on account.
Don’t also forget the marriage allowance which lets you transfer £1,150 of your personal allowance to your husband, wife or civil partner. That means it can reduce your tax bill by up to £230 in the tax year. In order to benefit as a couple you must be married or in civil partnership, you don’t earn anything or your income is less than £11,500 (currently) and your partner’s income is between £11,500 and £45,000 (currently). You can make this claim within your tax return.
These are just a few reasons to drop your paperwork in sooner rather than later and if nothing else, you might even be lucky (or unlucky) enough depending on who you see, to see us in our shorts!
Enjoy the sunshine everyone, long may it last!