The “Tailor Your Return” Section

This section of your online tax return is made up of three pages:

  1. Sources of income you have like self-employment, employment, rental income;
  2. Interest and dividends you may have received;
  3. Tax reliefs and allowances that you may be able to claim to reduce your tax bill like the marriage allowance.

Declare Your Income Sources

You’ll need to let HMRC if you were:

  • An Employee and provide your employers name (if you’re unsure check your P45 or P60)
  • Self-Employed, how many businesses you have and their names**
  • In a Partnership
  • Are a Landlord
  • Receive foreign income
  • Made Capital Gains

** If you were self-employed during the tax return period and your business turnover (not profit) is less than £1,000 then you can decide whether you claim the HMRC £1,000 trading allowance. It’ll mean you don’t need to declare your income but you also can’t:

  • Create an allowable tax loss that they can use against future profits;
  • Pay voluntary Class 2 National Insurance contributions to protect their full entitlement to state benefits like Pensions;
  • Get a tax refund if you are a subcontractor under the Construction Industry Scheme (CIS);
  • Claim maternity allowance or tax-free childcare because your earnings won’t be officially documented.

HMRC Trading Income Allowance

Declare Other Types of Income

Page 2 contains a list of questions to tell HMRC about all the other types of income you received during the tax year including:

  • Interest for example from UK banks, building societies or unit trusts;
  • Dividends for example from UK companies or open-ended investment companies;
  • UK pensions, annuities or state benefits;
  • Child benefit and whether you earned more than £50,000 because you may need to pay the high-income tax charge;
  • Lump sums, share schemes and life insurance gains.

If you made income tax losses during the tax year then you can let HMRC know about them here because you may be able to offset these against your other forms of income. For example, investors who make a loss on an EIS company may be able to offset it against their capital gains or income tax.

Claim for Tax Reliefs

If you made contributions towards a personal pension or retirement annuity then you’ll be able to get tax relief on a certain amount of the contributions you make, currently up to £40,000. You’ll receive tax relief at the highest rate of tax you pay.

If you have contributed towards a pension scheme then you can claim relief on your payments if you:

  • contributed to a registered pension scheme;
  • have taxable UK earnings, such as employment income or profits from self-employment, or
  • are a resident in the UK for some time during the tax year or sometime in the 5 preceding years and when you joined the pension scheme.

Depending on yours and your partner’s income, you may be able to transfer 10% of any unused personal allowance to/from your partner. This is known as the Marriage Allowance and the person claiming it must have income for tax year 2018/2019 of less than £11,850 (excluding up to £5,000 in tax-free savings interest).

Finally you’ll also be able to to claim any other tax reliefs on things like:

  • community investment tax relief;
  • venture capital trust shares;
  • maintenance/alimony payments relief.

How to Fill In Your Tax Return Online

Disclaimer
While I have made every attempt to ensure the accuracy of the contents of this guide, I cannot accept responsibility for any losses or penalties you may incur while following the contents. I have prepared the contents for a wider audience so you may need to seek additional assistance relevant to your own personal situation.


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Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.