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If you have not filed your 1999/2000
tax return by 31 January 2001, you will face a fine!
The absolute deadline to file your
1999/2000 tax return is 31 January 2001. Also, if
you were to file your return in late January and then
receive it back in early February for correction,
on re-submission it would be treated as a late filing,
which triggers a penalty of £100.
Make sure that you have all the
information you need to complete your return if it
is still outstanding. Your employer will have already
previously provided you with forms P60 and P11D, which
detail all expenses and benefits associated with your
job. If you are self-employed, you will have kept
records of your business income and expenditure.
If you received dividends, you will
need the tax vouchers sent with the dividend payments.
For deposit accounts, you can request a tax certificate
from your bank or building society.
What you will need to complete your
Self-Assessment Tax Return
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P60 from your employer
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Copy of the P11D your employer
sends to the Inland Revenue
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Annual statement of interest
earned
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For passbook-based accounts,
send the passbook off to have the interest earned
in the last tax year calculated.
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If you received income from
the estate of someone who died, form R185 from
the estate administrators will be required.
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You will need details of your
profits if you are self-employed.
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If you pay into a personal pension,
obtain a pension plan contributions certificate
from your pension provider.
There is also often a dilemma as
to what investment information needs to be included
on your tax return. Follow our easy guide.
Unit trusts and OEICs
If you hold managed funds such as
unit trusts and OEICs, the income you earn from them
must be declared on your annual tax return unless
the income arises from funds held in an ISA or PEP.
The tax payable depends on the type of fund you are
investing in. If you are investing in a UK equity
fund, you will receive a dividend with a 10% tax credit
attached; this is only reclaimable by a PEP and/or
ISA manager. Lower- and basic-rate taxpayers have
no further tax liability, but higher-rate taxpayers
will have to pay further tax on funds held outside
a PEP or ISA.
If you are investing in a fixed-interest
or money market fund, you will receive income with
20% tax deducted. This tax credit may be reclaimed
by non-taxpayers and by PEP/ISA managers.
Gains from selling your stake in
a fund need only be declared on your tax return if
the sale together with that of other taxable assets
in the same tax year exceeds a certain amount or if
your taxable gains exceed your annual capital gains
allowance (£7,100 for 1999/2000 and £7,200 for 2000/01).
Investment trusts
Dividends from investment trusts
are paid with a tax credit of 10%, which can only
be reclaimed by PEP or ISA managers. All dividends
must be declared on your annual tax return unless
they arise within a PEP or ISA. Capital gains are
treated in the same way as unit trusts and OEICs.
With-profit bonds and distribution
bonds
Only higher-rate taxpayers have
any additional tax liability on income from these
bonds, and you only need to make a declaration on
your tax return if you withdraw more than 5% a year
of the amount originally invested.
PEPs and ISAs
These never need to be declared
on your tax return and there is no liability to income
tax or capital gains tax.
Pension income
State pensions, personal pensions
and occupational pensions are all taxed like earned
income and will be treated as the first slice of your
income.
Don't panic if you have not yet
filed your tax return. However, you do need to take
action now.
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