Tax Return Criteria

The following memo will help you determine whether you need to complete a tax return. For more information and advice about your own specific needs - please call us.


Income Tax


You must complete a Tax Return each year if you:


·         Work for yourself – that is, you are self-employed or in a partnership

·         Are a company Director

·         Are a Name or member of Lloyd’s

·         Are a minister of religion (of any faith or denomination)

·         Have income from letting any property or land you own

·         Receive other untaxed income and the tax due on it cannot be collected through a PAYE tax code

·         Receive annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income

·         Have taxable foreign income


Additionally, if you are an employee or pensioner you will need to complete a Tax Return if you:


·         Have annual income from savings or investments of £10,000 or more (before tax)

·         Have annual income of £100,000 or more

·         Have tax due at the year end that cannot be collected through your PAYE tax code for the following year

·         Have untaxed income of £2,500 or more annually (if tax cannot be collected through PAYE)

·         Have annual claims against tax for expenses or professional subscriptions of £2,500 or more

·         Are 65 and over and entitled to a higher personal allowance


Capital Gains


You must complete a Tax Return if you:


·         Have sold or given away chargeable assets worth more than four times the annual exempt amount.  For 2007/08 the annual exempt amount was £9,200 so that is £36,800, or

·         Deduct losses from your gains, but your gains before any losses or taper relief are more than the annual exempt amount, or

·         Do not deduct losses but your gains after taper relief are more than the annual exempt amount, or

·         Want to claim an allowable capital loss, or make any other capital gains claim or election for the year




The Inland Revenue may sometimes want a Tax Return for other reasons – perhaps to check if the correct tax has been paid overall.  You can ask for a Tax Return at any time – for example, if you want to claim a particular tax relief or exemption.