UK Income Tax Return

Some of the problems that you have when you were high on especially above under thousand pounds and basically looking at what is self-assessment for you? Okay. So let’s look at the details. So first of all tax returns filing a move people from India, you know that most of the salaried class even if the tax rate tax is deducted at source if it’s tedious as well. Most of the salaried class are expected to file returns. Even if it’s a zero return even if it’s an ill return the expected to file returns, that’s the mandated requirement and from an Indian income tax perspective but in the UK, it is not mandatory to file a self-assessment. So if you are normal on a with no exceptional circumstances and the HMRC the Majesty’s Revenue Renewed Customs department is the name for the income tax department. They haven’t requested you explicitly then. You don’t need to file a self-assessment. So why would someone be asked to file a self-assessment is if there are any exceptional circumstances, for example, if you’re getting another income like from a rental house or something like that or from your shares or your dividends if you’re getting another income or if you sold some property if you have capital gains, so Very exceptional circumstances, like, you know, if you move funds from India to the UK of your friends have given you some longer some additional amount that is coming to your bank account HMRC might ask you to do a self-assessment return and they send you a letter home basically instructing you to do a self-assessment. So from that point on the first time that you do a self-assessment, you will have to continuously do a self-assessment every year. So once you have Been asked to do a self-assessment every year from that point. You have to continue doing I mean, there are people who are probably not done self-assessment for 20-30 years because there are no exceptional circumstances for them.

But in some cases people who start owning a high salary like you do three years, they put the Astros surface. Also, you are the reason that you could do a self-assessment test. If you are eligible to claim a rebate, I will come to it later in this video today eligible to claim a rebate or a discount on your own. 

Boxed or if you have to pay more tax, or if you have to get a tax discount because the stacks have been calculated incorrectly on your income. Then you can then also you yourself can file a self-assessment return and that from that way they will give you the tax calculation and you can find out whether you are owed more tax to the government or the government owes ever get back to you and you can do this using the self-assessment process. So the tax here is Ali from April to March but it ends on April 5th and the new tax year starts on April 6. So the tax year for 2019 ended on April 5th, 2009 T. So it was from April 6, 2008, into April 5th, 2009 T So for that tax year, you have to file the return you can find the written into risk and can either file it using paper submission.

 You can write and fill-up the form and you can file it to HMRC. Or you can find it online. So the deadline for filing it using paper returns is October end of October 2019. And the deadline for filing it online is the end of January 2020. So you’ve got roughly about eight months to complete the online return for the taxes now, even though the deadline for online assessments is January 31st, 2020. If you’ve never done a self-assessment before then the first time that we had to do it for you little register for the Timothy get real the gold or do you take Gateway common gateway to Scott? So we have to go to Governor give you the link in the description to go to gouge out you came here to register for self-assessment for the first time. When you do that, they’ll send you a verification code in a post to your home address. You need this verification code to continue your registration process. This end-to-end process can take up to two to three weeks. So give yourself another three-week window if you’ve never done self-assessment. Before completing this registration process, so don’t leave it out to January. I would say if you’ve been asked to do the self-assessment or if you need to do the self-assessment for the previous tax year then start the registration process early. So at least you can get the government Gateway logins and you can prepare for your self-assessment process. So what do you need for your self-esteem primarily? What you need is your P 60, which is the end of your financial statement from your employer this 

Like a form 16  from an Indian employer that’s called P 60 and it has all the tags native. Basically. What’s your total income for the year? What is the tax already calculated objected and what are the other contributions that we mentioned with the form P 60 and you can use the be 60 practically to fill your assessment statement, but on top of that you’ll also need if you’ve got any bank interest or if you have any other income, you’ll also need those details to fill up your Assessments of the complete application form so the assessment is a self-guided if you do it online is quite easy. You don’t really need an accountant or any Auditor’s help for doing your system. I mean, I haven’t I’ve been doing an assessment for nearly 10 years. I’ve never used an accountant for my self-assessment.

 Now if you are a contractor or if you are on a permanent, I mean on a contract income then you need an accountant because that process a little bit more cumbersome, but I’m talking about salary class which gets one income and the tax is deducted at source. You don’t really need an accountant yourself. You can do it yourself. The self has been possible. Once you started it’s quite easy and conspires Itself by decreasing. So in mind the cost of the living guide, I have spoken about the UK tax income tax Labs the out what the basic roots are. What’s the tax along that the tax-free allowance personal Adventure is called and various income. Slabs or the rates last tax rates laps over 20% 30% 40% 45% in quite a detail. Now. I also mentioned like in India where you can invest in LIC policy that ensures various other investment funds or our home loans interest and principal you get a tax discount on our production of income tax from those Investments. Now, I told you that there are no such options. 

Okay, but that is one common option for normal people which is the marriage allowance. Now this works if you are married and if your spouse is getting a lower salary or not getting a salary so every person gets 12,500 pounds of personal loans. Now if your spouse is not working and has no salary and basically you can use the default potion of their personalized but if The spouse is working and still they’re getting less than 1,500 fans. There is a portion of their personal moments of they’re not used so you can use that percentage as well. So for example, if a spouse is not working and they can give you 10% of their first – which is thousand two hundred fifty pounds now for this to work you need to be the main taxpayer need to be on a basic step basic rate tax, which means they need to be owning less than listen to bones as i predicted.

So the early income for the primary taxpayer should be less than 50% with and then the spouse needs to have a salary less than the personal loans, which is 12,500 pounds. So assume the spouse doesn’t own anything then you can transfer 10% which is a thousand two hundred fifty points to the main taxpayer as an additional tax few elements. So which means you’ll save 20% additionally on the which is 250 pounds per year you can get added as a discount and you don’t need to pay tax on that amount so you can also bag at it for up to three years. So if you have never done this if you are not aware of this if you have not been using this, but you’ve been married for the last three years and been paying income tax in the UK for the last two years so you can backdate it for up to three years as well so you can get a discount or you can get the rebate for this year and you can also get a bag. A cute little bit for the last three years which means you can get an income tax refund of about 8,000 pounds on the tax that you have already paid. So if you are a spouse however is it is getting a salary and they don’t have the full personal events. For example, if they have let’s say 7,500 pounds of salary. 

They are only able they only have a free personal loan of about 5,000 pounds so they can give you ten percent of the remaining five thousand pounds, which is about 500 pounds so you will still get 20% savings on that 500 pounds which is still about a hundred pounds. You won’t get the entire two pounds for you do you get some tax rebate based on whatever the remaining portion of your spouse’s our Personnel our so this could work either way. The husband could be the main owner the wife could be non-working or the wife could be the main another husband could be slow in Iraq not work.

 So this could work either way so which is why you know it It’s called is an Irish all over the was a common problem that people face for for for self-assessment or be asked to self-assessment or that we make sure that our selfishness if you are a high honor, so if you earn more than a hundred thousand pounds then for every two bones that you earn above a hundred thousand pounds, you will lose one pound of your personal life or personal tax allowance. So for example, if you want a hundred and twenty-five thousand pounds you will practically lose all of your personal levels. So 12,500 pounds Person of Interest the abdomen. This would indirectly mean that you will now have to pay the retrospective tax of the personal loans. They had originally given you for which you paid no tax for the first twelve thousand five hundred pounds of your salary. So what that would translate into is to start with your to pay 20% tax for the 12,500 pounds, which is up to 2,500 pounds and it doesn’t stop there. It’s sort of Cascades because now they’ve removed all your personal loans your slabs are now.. 30% on the shifting slab an additional 40% of the shifting slab. So if you earn above a hundred and twenty-five thousand, for example, you will end up paying in addition to whatever tax you would have paid you will end up in on a self-assessment. The calculation will basically show you that you will end up being really photos and the photos and five two points additionally over and above all the tags that you have already paid. So we self-assessment for high honors, typically the government will send you a letter A home saying that you need to do a self-assessment and pay this tax. And if you already know that you are a cell phone. I mean you were high on and learning about a hundred thousand pounds then it’s advisable that you do self-assessment on your own even if the government doesn’t ask you because they can again go and retrospectively ask you to pay tax for the previous as well. So it’s better that you do a self-assessment on your own even if the government hasn’t asked you to do it in some cases the self-assessment when you complete it on the 31st. 

The payment due date is also 31st. But generally what happens is if you completed late there’s a two or three days calculation of what happens then we’ll send you a notice and we do give you enough time to make that payment can you can make the payment within the due date. If you don’t make the payment within the due dates additional tax, whatever you’re owed, and then we have a penalty on top of it alternatively. If you have paid extra tax and the self-assessment Returns the fact that you are old debate. 

How come the government will send you a check to your post letter C. This is why it is important to keep your postal address updated with the UK or with the HMRC so that they will send you a check for whatever amount that you have obeyed tax by understanding. Your tax code is also very important for most people the tax code will be 1250 L stands today and 1250 is for the 12,500 pounds plus 1 XI that I talked about and L stands for standard without any. It’s now like I said if you get marriage elements if you get a marriage allowed, so if you give up a marriage everyone to our tax code could be one Chrysler M or 1250 n and so on so there are various subcategories of this if this tax code and your personal loans primarily determined the numbers of your tax cut, so even if you don’t want to do a self-assessment even register for the GAO Taco the god of UK website to HMRC’s 

 You can verify what your tax code is this will basically tell you what your tax code is and also explain why the tax code has arrived. So if you think if you don’t have a 1250 L and if you have something else, for example, people will have a tax code with k or with a different alphabet this this this generally means and some emergency tax code because they haven’t had enough time to calculate your carpet ask what you might be paying incorrect tax. Oh, it’s probably easier to go and register. Find out what your tax code is if you think your tax code is incorrect, you can actually submit a request to get the tax code changed so that you start paying the right tax or you start paying a lower amount of taxes being directed at a higher amount. 

 

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