Tax return to be submitted by October 5th?

[JDO]

I have recently read an article by Arthur Weller (www.taxinsider.co.uk)

The article stated that if any property rental income profit had been generated in the 05/06 tax year then the I.R must be informed by Oct 5th 2006.

Is this correct...I thought the 05/06 tax return was not due until 31st January 2007...?

Regards

John

[Tax Accountant]

I have recently read an article by Arthur Weller (www.taxinsider.co.uk)

The article stated that if any property rental income profit had been generated in the 05/06 tax year then the I.R must be informed by Oct 5th 2006.

Is this correct...I thought the 05/06 tax return was not due until 31st January 2007...?

Regards

John

These are two different things. Both statements are correct in their own rights.

Any new source of income, such as letting a property for the first time or starting a new trade, must be notified to the Tax Office within 6 months of the end of the tax year in which the income first arose. This then gives enough time to the tax office to send you a tax return for you to complete and file by the due date.

All tax returns must be completed and filed with the tax office at the latest by 31 January following the end of the tax year. However, if you complete and submit your tax return by 30 September following the end of the tax year, the tax office will guarantee to calculate your tax for you in good time to pay it by the payment due date of 31 January. They will still calculate your tax even if you send your tax return after 30 September but they will not guarantee to do so by the payment due date of 31 January. In this case you have to be prepared to do the calculations yourself and pay the tax by 31 January.

2005-06 tax return has to be completed and submitted by 31 January 2007. Any tax due for 2005-06, or any balance of tax due if you have also made payments on account for that year, must also be paid by the same date, ie 31 January 2007.

Additionally, you may also be required to make payments on account for the following tax year 2006-07. These are equal to your total tax liability for the tax year 2005-06 and payable in two equal instalments on 31 January 2007 and 31 July 2007.

Therefore, you may be required to make two payments on each 31 January, one for balance of tax due for the previous tax year and one on account of tax due for the current tax year.

If you calculate that your tax liability for 2006-07 will be lower than the tax liability of the previous year, you can make a written application to pay reduced payments on account. Any balance due for 2006-07 will be due on 31 January 2008.

I hope this helps.

Ramnik

[Poppy]

Please excuse me. Your link does not take the reader to an article by Arthur Weller. I am asking you to revise it please.

Alternatively and this will probably have more credibility, will you point to this legislation on the HMRC's website. Until I read the actual HMRC's rules I don't listen to chain-linked half-truths - and neither should you.

[Tax Accountant]

Notwithstanding the link stated, I hope my reply above, which has obviously crossed in the post with yours, clarifies the position.

Ramnik

[JDO]

Ramnik - thank you for your usual comprehensive and detailed reply.

Poppy - The article I refer to is part of a monthly ezine I receive. The ezine is for subscribers only so please accept my apologies for leading you to the tax insider website.

Regards

John

[Tax Accountant]

Ramnik - thank you for your usual comprehensive and detailed reply.

Regards

John

You are welcome.

Ramnik