TAX RETURN DEADLINE

If you have just come out in a cold sweat having read the headline then don’t panic.  It is true that by the time you have read this article you will have probably missed the 30 September deadline for submitting your UK tax return, but fear not.  This deadline is only if you want the Government to calculate your liability.  If you intend to prepare the calculations yourself or use a tax accountant then you have until the end of January 2007.  Do not be complacent though; time passes quickly in the tax world.  If you have not got all your paperwork together then you need to start working now, after Christmas will be too late. 
Make sure you include any and all the supplementary pages that apply to you by answering questions 1 to 9 on the tax return.  Once you have these supplementary pages you are ready to begin.  If you are going to go it alone and fill in the form yourself then the Tax Calculation Guide will be invaluable to you, although you do need to remain focused and go through each step in order.
For most people here in Spain the UK tax return will relate to savings and investment income and perhaps income generated from property rental. The tax year to be assessed is April 2005 to April 2006.  All income and any offsetting expenditure should be detailed in the return.
If you receive any pension income including the state pension it should be incorporated as it forms part of your total income.  Before your start filling in the form in earnest, ensure that you have all the appropriate tax deduction certificates and information relating to interest payments.  For property rental you should have retained invoices for costs incurred such as; agent’s fees, repairs, insurance, any mortgage interest paid and wear and tear allowances. 
Once completed it is a good idea to make a photocopy of the return.  If you already do this then compare it with last years.  Any anomalies should be explained in the ‘additional information’ section within the return. 
It is your responsibility to make the tax return and if you fail to do so for what ever reason you may be liable to a fine and any interest due on late payments.  If you have any doubt contact HM Revenue & Customs.  The web site is www.hmrc.gov.uk  where you will be able to find information, addresses and telephone numbers.
For those who pay taxes into the Spanish system you have until June 2007 for liabilities relating to the fiscal year January to December 2006.  Again, time passes quickly and it would be wise to start preparing your return as soon as you can after the year end.  
The processes are similar to the UK system, thus in order to claim any allowances you must make sure you have appropriate documentation which in Spain must include your name and NIE number.
Wealth Tax issues should be discussed with your tax accountant in good time so that any suitable tax-effective measures to reduce the liability is completed before the end of the year. 
Again as with the HM Revenue & Customs in the UK it is your responsibility to make all returns in full and on time. The authorities are strict in there interpretation of the rules.  So start now and get ahead of the deadline.
If you have any queries about this article or any Money Matters queries contact Ann on 661003324, email This email address is being protected from spambots. You need JavaScript enabled to view it..  If you have personal questions for Ann you may contact her via Big Attitude PR on 661757433, email This email address is being protected from spambots. You need JavaScript enabled to view it..
 

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