There are a variety of reasons to file a tax return. Most of the time it is because it is a legal requirement. There lots of benefits to filing a return, whether you are legally required to or not We have detailed some of these reasons below:

Speed up receipt of a refund

If you have had tax deducted from your salary or a previous salary in the year, for example if you worked in the UK in the same tax year you may well be due a tax refund. This will be the case if you only worked in a taxable position for some part of the year.  By filing your return you will ensure that you receive the refund as quickly as possible.

Proving your income

Filing a tax return provides definitive proof of your income for a tax year. This is a requirement for a mortgage if you want to purchase a property. It is also largely required for any sort of finance from a bank. Making any kind of investments such as pensions, ISA’s or buying stocks and shares. It can also be required if you ever look to make a visa application.

Avoiding penalties

By filing a tax return you will be guaranteeing that you will not be liable for any penalties. If you are required to file a return and haven’t done so, late filing penalties can exceed £1,200. If you file a return but are not required to you can’t be issued with any penalties.

It is also now a legal requirement as a UK resident to declare any offshore income. This means that any money you earn whilst working on Superyachts MUST be declared. Learn more about Offshore disclosure here

As a UK resident there is quite literally no downside to filing a tax return. The benefits mentioned above are clear but the negatives of not filing, even though you may not owe tax have pretty serious financial implications.

Are you unsure about your tax return position? Would like some additional help working out what you are supposed to do? Please feel free get in touch. We are always happy to help.

 

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