Tax Return Information Guidance

Transcription

1 Tax Return Information Guidance This guid a nc e is d esigned to help you to provid e the c orrec t informa tion to p repare your ta x return. If the informa tion you p rovid e is ac c ura te a nd c omp lete this will red uc e the time ta ken to p repare your ta x return a nd send it to you for a p prova l. What you need to do You should rea d the notes on a ny entries you a re ma king on the ta x return informa tion form to ensure you a re p rovid ing the c orrec t d eta ils. Section 1. Employments/ Directorships You must p rovid e d etails of a ll inc ome d erived from emp loyment and d irec torships. If you a re with a n emp loyer on the la st day of the ta x year you will b e issued a P60 whic h will show your p a y with tha t emp loyer a nd should a lso show p a y from a ny p revious emp loyments. If you lea ve a n emp loyment p rior to the 5 th Ap ril your emp loyer will issue you a P45 whic h shows your tota l p a y with them up to the d a te you left, a nd should inc lude p a y from a ny p revious emp loyments. In a ddition to a P60/ P45, if you rec eived a ny b enefits from your emp loyer, fo r exa mp le, a c omp a ny c ar or med ic a l insura nc e, you will b e given a P11d whic h shows the c ash eq uiva lent of those b enefits. In the insta nc e tha t you c a nnot find your emp loyment d oc umenta tion you will need to c ontac t your emp loyer a nd a sk them to send you a sta tement of ea rnings for the p eriod 6 th Ap ril 2013 to 5 th Ap ril A c lose c ompany is a Limited c ompany tha t ha s five or fewer p a rtic ip a tors i.e. sha rehold ers of the b usiness.

2 Section 2. Bank Interest You will need to p rovid e the a mount of interest re c eived on your p ersona l b a nk, b uild ing soc iety a nd Na tiona l Sa vings & Investment a c c ounts. Do not need to inc lud e interest paid on your b usiness a c c ount or interest on ISA or PEP a c c ounts. You c a n find d eta ils of a ny interest p a id on your b a nk sta tements or on Sec 352 c ertific a tes whic h a re issued b y b a nks d ec la ring the interest paid for the ta x yea r. If you d o not ha ve your b a nk sta tements or ha ve not rec eived a Sec 352 then you will need to a sk your bank for interest rec eived on your a c c ounts. Do not inc lud e d eta ils of a ny c ha rges ded uc ted from your ac c ounts. IMPORTANT Fina nc ia l Servic es Comp ensa tion Sc heme (FSCS) Ac c rued Interest New measures will ensure tha t a mounts rep resenting ac c rued interest, paid b y the FSCS a s p a rt of c ompensa tion p a yments to c ustomers of defa ulting financ ia l institutions, will b e within the c ha rge to inc ome ta x. The legisla tion will ensure tha t c ustomers a re in the sa me p osition a s if the ac c rued interest had b een p a id b y the d efa ulting financ ia l institution itself. The mea sures will a p p ly to p a yments ma d e by the FSCS a fter the 5 th Oc tober If you ha ve rec eived suc h a p a yment a fter the 6 th April 2013 you must provid e d eta ils of it a s it will need to b e d isc losed on your 2014 ta x return. Section 3. Dividends Received You will need to inc lud e a ny d ivid ends you rec eive from a ny c omp a ny other tha n through Brookson. Where p ossib le p lea se p rovid e c op ies of the d ivid end vouc her. If you d o not ha ve the vouc hers p lease sta te the na me of the c omp a ny a nd the numb er of sha res you hold. Section 4. Self Employment If you are in rec eip t of any inc ome as a sole tra d er then you c an provid e a c op y of your self emp loyment ac c ounts to be inc lud ed on the releva nt ta x return pages or a lterna tively should you wish for Brookson to p rep are a set of a c c ounts for you then we will req uire deta ils of the inc ome a nd exp enses inc urred d uring the yea r.

3 Section 5. Partnership Income If you a re in rec eip t of a ny inc ome from a partnership then you c an p rovid e a c op y of your p a rtnership ta x return for the ta x year 2013/ 2014 to b e inc luded on the releva nt ta x return p a ges or a lterna tively should you wish for Brookson to p repare a set of ac c ounts for you then we will req uire d eta ils of the inc ome a nd exp enses inc urred d uring the yea r. Section 6. Foreign Income You will need to p rovid e deta ils of any inc ome you rec eived overseas deta iling wha t this inc ome wa s in resp ec t of a nd when it wa s p a id a nd c onfirma tion a s to a ny foreign ta x tha t ha s a lrea d y been d educ ted a t sourc e. Section 7. Rental Income You will need to provid e the tota l gross rent, p lus d eta ils a nd a mounts of a ny exp enses you ha ve inc urred. Exp enses inc lude: Mortga ge interest, if you ha ve a repayment mortgage you will need to ask your lender for the interest only element of the p a yments you ma d e from April 2013 to Ap ril Ma na gement fees. If you p a y a letting a gent you c a n rec la im the c ost of this. Insura nc e, ground rent a nd Counc il Ta x. You ma y be a b le to c la im the c ost of work c a rried out a t the property, p lea se provide full d eta ils of a ll rep a irs c a rried out. Brookson will a lso need to know if the p roperty is rented out a s a fully furnished p rop erty a s this c ould a ffec t the exp enses tha t a re c la imed. A furnished p roperty is one tha t someone c a n move in to immed ia tely without p rovid ing their own furnishings, white good s a nd basic eq uip ment suc h a s p la tes a nd p a ns. Repairs -if you a re c la iming wea r & tear you c a nnot c la im for repair or rep lac ing soft furnishings, white good s or a ny movea b le items in the p rop erty. It is a lso imp orta nt tha t you let Brookson know whether the p rop erty is a furnished holid a y let (broa d ly sp ea king a prop erty let fully furnished must be a va ila b le to let to the pub lic for a t lea st 210 days,a c tua lly let for 105 d a ys or more during the ta x year a nd not oc c up ied b y the sa me tena nt for more tha n 31 d a ys in a ny 7 month p eriod ).

4 Section 8. Pension Received If you a re in rec eip t of a p riva te or oc c upationa l p ension you should rec eive a P60 showing how muc h you were p a id a nd how muc h ta x wa s d ed uc ted in the ta x yea r. If you ha ve not rec eived a P60 from your pension c omp a ny p lease c ontac t them a nd a sk them for d eta ils of how muc h p ension they p a id you a nd the ta x d ed uc ted. Sta te p ension, p lea se p rovid e d eta ils of your Sta te Pension from April 2013 to Ap ril You will ha ve rec eived a notic e from the DWP a d vising how muc h your weekly p ension will b e from Ap ril If you d o not ha ve this you will b e a b le to find the weekly or 4 weekly a mount p a id to you on your b a nk sta tements. You should ma ke a note of the a mount of sta te p ension rec eived. Section 9. State Benefits Sta te Benefits inc lude the following: Job seekers a llowa nc e Ta xa b le Inva lid ity Benefit Ta xa b le Inc apac ity Benefit Sta te Retirement Pension A full list of ta xa b le Sta te Benefits c a n be found here : http :/ / ma nua ls/ eima nua l/ EIM76101.htm Section 10. Child Benefit If you live or ha ve lived in a household where either you or your partner wa s entitled to rec eive c hild b enefit during the ta x yea r then you must c omp lete this sec tion. Section 11. Capital Gains Tax Ca p ita l Ga ins Ta x is a ta x on the p rofit or gain you ma ke when you sell or disp ose of a n a sset. You usua lly d isp ose of a n a sset when you c ea se to own it - for exa mp le if you: sell it give it a wa y tra nsfer it to someone else exc ha nge it for something else

5 rec eive c omp ensa tion for it - for exa mp le you rec eive a n insura nc e p a yout when a n a sset ha s been d estroyed It's the gain you ma ke - not the a mount of money you rec eive for the a sset - tha t's ta xed. Most a ssets a re lia b le to Ca p ita l Ga ins Ta x when you sell or d isp ose of them. This a p p lies whether they're in the UK or oversea s. However, some a ssets a re exemp t, suc h a s your c ar, p ersona l p ossessions d isp osed of for 6,000 or less a nd, usua lly, your ma in home. Section 12. All other income / gains If you were in rec eip t of a ny other inc ome or rea lised a ny c a p ita l gains / losses d uring the year, p lease make a b rief note of the d eta ils a nd let us ha ve c op ies of a ll c ertific a tes or other d oc umenta tion rec eived. For exa mp le: Cha rgeable Event Ga ins from life a ssura nc e p olic ies Section13. Student Loans Plea se c omp lete this sec tion if you ha ve an inc ome c ontingent stud ent loa n; this is a loa n tha t would have b een ta ken out after Ap ril 1998 a nd the repayments c a lc ula ted a s 9% of your gross inc ome over 16,365. Plea se note if you have a ma d e volunta ry p a yments to the Student Loa n Comp a ny these will not b e ta ken into a c c ount for self-assessment p urp oses. For more informa tion on Stud ent Loan a nd self-assessment p lease follow this link; http :/ / ma nua ls/ c slma nua l/ CSLM2001.htm Section 14. Pension Contributions Plea se provid e the a mount you p a y ea c h month to your p ension sc heme. For more informa tion on p ensions you should sp ea k to your fina nc ia l a d visor. Section 15. Allowable Deductions If you ma d e p a yments to a ny organisa tion for whic h you b elieve a ta x d ed uc tion c a n b e c la imed p lease p rovid e d eta ils of the na mes of the organisa tions a nd the a mounts p a id. Exa mp les inc lude

6 You should provide copies of documentation where available. Please note for VCT and EIS scheme you must provide documentation. Section 16. Residency Pages There are a number of fa c tors tha t need to b e c onsid ered to d etermine whether you a re resid ent in the UK, these a re a s follows: You were resid ent in the UK for one or more of the p revious three ta x yea rs a nd spent fewer tha n 16 days in the UK in the c urrent ta x yea r OR You were resid ent in the UK for none of the p revious three ta x yea rs a nd spend s fewer than 46 d a ys in the UK in the c urrent ta x year OR You work full time oversea s for the releva nt ta x yea r ( working on a vera ge, 35 hours a week); You sp end no more tha n 20 d a ys working in the UK, where a working d a y is d efined a s working for more tha n 3 hours; a nd You sp end fewer tha n 91 d a ys in the UK in the ta x yea r. The Government is c urrently c onsulting on whether to a mend the sc op e of the full-time work abroad test b y either inc reasing the numb er of working d ays a llowed in the UK from 20 to 25 or inc reasing the numb er of hours whic h c onstitute a working d a y from 3 to 5. You a lso need to c onsid er your d omic iled sta tus, ma jority of UK resid ents are a lso d omic iled in the UK a s this is the c ountry they were b orn a nd intend to c ontinue living in this c ountry. Below a re the d eta ils of the d ifferent typ es of d omic iles: Domic ile of origin Everyone ac quires a d omic ile of origin a t b irth. This is usua lly the c ountry tha t your fa ther c onsid ered to b e his rea l or p erma nent home a t the d a te of your b irth. If your p a rents were not ma rried when you were b orn, your d omic ile of origin c omes from your mother. Your d omic ile of origin will c ontinue until you a c q uire a new d omic ile - therefore if you ha ve a d omic ile of origin outsid e the UK, then this is likely to still a p ply unless you inte nd to rema in in the UK p erma nently or ind efinitely. Domic ile of d ep end enc e If you a re legally d epend ent on a nother person, for exa mp le b ec ause you a re a c hild, you will a utoma tic a lly ha ve the sa me d omic ile a s the other person - so if their d omic ile c ha nges, yours will too. In a d d ition, if you a re a woma n a nd you were ma rried b efore 1974 you a utoma tic a lly a c q uired a nd reta in the sa me d omic ile as your husb a nd. But if you were a US na tiona l ma rried to a ma n d omic iled in the UK, you reta ined your US d omic ile for UK ta x p urp oses.

7 Domic ile of c hoic e - c ha nging your d omic ile After the a ge of 16 (earlier in Sc otla nd ), you c a n c ha nge your d omic ile. To d o this you will need to settle p erma nently in a c ountry other tha n your p revious c ountry of d omic ile. You ma y b e a sked to p rovid e evidenc e of this. If you c ha nge your d omic ile you ha ve a 'd omic ile of c hoic e'. 17. Payments on account This rela tes to p a yments ma d e rela ting to the yea r ended 5th Ap ril 2014, a n a mount wa s p a yable b y the 31 st Ja nuary 2014 with the sec ond p a yment b eing d ue on the 31 st July Underpaid Tax This rela tes to a ny underpaid ta x for p revious ta x yea r tha t HM RC ha ve inc lud ed within your ta x c od e ra ther tha n p a ying the a mount in one go to HMRC, it is ded uc ted through a ny emp loyment or p ension inc ome onc e the PAYE ta x c od e is a pplied. We require d eta ils of a ny und erp a yment inc luded in the c urrent or p revious ta x yea r as this will a ffec t your persona l ta x lia b ility. 19. Repayment details You ma y of overp a id ta x d uring the year whic h would result in a ta x rep a yment b eing d ue b ac k to you. This c a n be either issued via c heq ue b y HM RC to your home a d d ress or a lterna tively if you wish for HMRC to p a y this d irec tly into a p ersona l b a nk a c c ount whic h help s