Income tax was first introduced by Pitt the Younger in 1799 to help pay for the Napoleonic Wars. Since then it has been a temporary tax, but unfortunately is still in place and Parliament has to re-apply for it to be levied in the annual Finance Act. Theoretically it could be repealed but this is highly unlikely!
Consequently unless you are taxed under the Pay As You Earn (PAYE) system or are a non taxpayer you will have to complete a Self Assessment Tax Return, or a tax re-claim form if you pay too much tax and are entitled to a repayment.
Under PAYE the Revenue should check your tax position annually and adjust your tax position, but you should ensure that your coding notices are accurate.
You would normally have to complete a Self Assessment Tax Return if you are in receipt of untaxed income, such as rent from properties or foreign income, or have capital gains to report. You may also have to complete a Return if you are a higher rate taxpayer or are in receipt of the age related allowance.
Tax repayment claims are made by clients who have taxed income in excess of their personal allowance, but have a proportion of their allowance available to claim back some of the tax deducted from their investment income.
In all cases Barwells specialists can advise on your tax position and assist in the preparation of your returns.
As a general guideline the cost of preparing a straightforward annual Self Assessment Return would be in the region of £275 plus VAT, with an additional nominal fee payable if you are registering for Self Assessment for the first time. For more complicated returns, such as those with capital gains tax computations an additional fee would be payable. We would of course be pleased to provide a quotation if required.