April 5. 2016
It is fast approaching the end of another tax year, it means only one thing – tax return
time!
Remember, you have nine months in which to file your 2015/16
tax return with HM Revenue and Customs.
However, if you are planning to claim tax credits or renew
your tax credit claim, your tax return will have to be completed before 31st
July 2016 so that you can give the tax credit people the required figures from
your tax return.
Another good reason for getting your tax return completed
early is that you will know sooner rather than later how much tax you will be
required to pay by 31st January 2017. Remember, depending on your level of profit, your
liability could include the addition of Class 4 National Insurance and Class 2
National Insurance. Also, you may be
liable to make payments on account towards the next tax year if your total
liability is in excess of £1,000. All
told, you could be looking at a hefty tax bill, so knowing early how much you
need to pay, could be beneficial to you.
The good news from the recent budget is that most of the tax
thresholds have increased from last year and will increase again in the year
just beginning so you are allowed to earn a little more before you start paying
tax!
