A working cycle for an individual
An individual has to prepare an annual tax return by the 31st January after the end of the tax year in April.
He may have to make payments on account in the July of each tax year. This is normally calculated at 50% of the balancing payment for the previous year.
Personal Tax Return basics
The annual tax return is issued by the HM Revenue and Customs (HMRC) annually. It is a declaration of amongst other things:
Tax returns are usually sent to:
The return is usually submitted online with a calculation of the tax due, tax outstanding and ‘payments on account’ for the next year.
The Tax payer has a duty to notify HMRC within 90 days of commencement if they start to trade or have taxable source to report. Once notified HMRC will issue a ‘tax reference number’ (UTR) and notify the taxpayer that it has issued a tax return.
Paper Returns can still be completed but Electronic Returns are used by the majority of taxpayers and are more convenient.
Tax is paid using a ‘payments on account ‘ system.
The Personal Tax Return
Everybody worries about their Tax Return to some extent -the fear of a big unexpected tax bill is the most common cause.
The best solution to the anxiety associated with tax returns is to plan well ahead and keep customers informed in advance, wherever possible so that they have time to plan/save for their tax payments.
Riverside developed its systems to make this possible and ensure that customers are not normally shocked by their tax bills and have the resources to settle them.
As we have a forward-planning approach we anticipate the taxes due in advance and let our customers know in plenty of time.
Riverside’s approach is to make the process as simple and stress free as possible for the customer and minimise tax bills whenever possible.
Are you worried that you still have the right set up for you? Please call us for a quick analysis.