What you Need to Know About the New Tax Year

tax year 2018

In the UK, the tax year runs from April 6th until April 5th the following year. If you haven’t done so already, you will need to fill in a tax return. If you haven’t created a return yet, you will be notified by the HMRC that you need to do so. If you are unsure on if you need a tax return, you can check on the government website. In general, you will need to create a tax return if you are self-employed, or if you earn an income part time away from your full-time job.

Who needs to file a Tax Return?

Tax Returns are not just for those who are self-employed. You will need a tax return if you fall under any of the following:

  • Your taxable income is above £100,000
  • You have an income from abroad
  • If you have earned money from selling a second home, shares or other assets
  • You or your partner’s income exceeded £50 000 when claiming Child Benefit
  • Your income from any savings is £10,000 or more before tax

There are other factors that contribute to whether you will need to fill in a self-assessment for the HMRC. If you are still unsure of whether you’re eligible to file a tax return, call the HMRC Helpline, where a member of staff will be able to help you further. If you are in full-time employment and do not earn money outside of your contracted job, any tax you owe will be automatically deducted each month from your pay. You will not have to set this up, as it is automatically put in place by your employer. If you believe you are on the wrong tax code, if you have been paid too little tax, or if you believe that the HMRC owes you money from emergency tax, we suggest calling the HMRC Tax Code Contact Number.

Important Dates for the 2018 Tax Year

  • January 31st – The first payment of the tax year
  • April 5th – This is the end of the previous tax year, and means that if you need to file a return, that you should do so before this date. This might be different if you are newly self-employed, as you may only need to file a return the following April.
  • July 31st – The second payment of the year
  • October 5th – This is when you need to speak to the HMRC about your capital gain and further income aside from your regular income. You also need to register as self-employed by this date.
  • October 31st – You will need to send your paper tax return by this date. Sending your paper tax return after this date might mean that you are charged a penalty fee
  • December 31st – When filing a tax return online, this is the date in which it will need to be submitted.

Keep Calm and Carry On – HMRC Assures Panicked Taxpayers

A shock EU referendum result has rocked the UK in the past week, and the effects that will ensue are concerning the majority of its citizens. There is no doubt that tough times are ahead, particularly where the economy is concerned, and it seems people are fretting over just how much of our system is going to be affected. HMRC has issued a message to reassure the nationwww.hmrctalk.co.uk that nothing has changed…yet.

HMRC were quick to issue a ‘carry on’ message that stated that no laws were changed since the result was released and a Brexit confirmed. The message is cleverly recorded and played out when the helpline is called. The audio assures callers of no change to any taxes, tax credits, general HMRC services or child benefits as a result of the referendum. Although it is somewhat of a given that financial services will change in the future, in the immediate aftermath, nothing has, or will be altered. Those that didn’t vote for a Brexit, or even those that did, are desperately anticipating the political changes that are in store. As chaos ensues, HMRC stresses that there is no need to contact HMRC as a result of the referendum as everything will run as normal.

There is no denying that the country is now at a risk of recession after leaving the European Union, and when the bigger picture is viewed, there will almost certainly be changes to tax laws and benefits, but if people start jumping the gun and ignoring tax deadlines, a financial deficit will come much sooner than expected.

Following the controversial result of the referendum, was the resignation of Prime minister David Cameron, which plunges the UK into further uncertainty. As a result of the UK’s departure, article 50 must be put into place, David Cameron has announced that it will not be triggered until a new Prime minister has been elected and there is a clearer picture of the country’s future. He wants to leave the dealings of article 50 (rules that apply to how a state leaves the EU) to his successor, as he notoriously campaigned for a ‘remain’ result. It is now left to decide who is strong enough to actually get things under way, with the risk of the collapse of a country on their shoulders. With so much at stake it begs the question, will the UK actually leave the Eu at all? The process has yet to begin and will definitely be a slow and lengthy one.

In agreement with David Cameron, Leave campaigners such as Boris Johnson and George Osbourne have agreed that Article 50 should not be triggered immediately, with a slow and careful exit of the EU being safer and more logical. Whilst assuring us that the economy was in a strong enough state for what was to happen, he told people to expect a hard process of adjustment and uncertainty as this will be inevitable. He has, however, been sure to say that relationships with the EU will not change overnight.