Q: My tax affairs are quite simple in that I am employed and my only other source of income is approximately £2,600 per annum from a property that I have a half share in. Do I have to file a tax return?

Katie, Bath

A: Many individuals with relatively simple tax affairs are now able to deal with various issues with Her Majesty's Revenue & Customs (HMRC) by telephone and this can dispense with the need to file an annual tax return.

You can notify HMRC of any changes in personal circumstances, including changes which may affect any claims to personal allowances you are entitled to.  You can also notify HMRC by telephone of changes to your employment or self-employment status and advise them of any untaxed income, up to a limit of £2,500.

Where untaxed income exceeds £2,500, it is necessary for the individual to complete and file a self assessment tax return.  As your rental income is £2,600, you should therefore contact your local tax office and ask them to issue a tax return form to you.

Before completing your tax return form you should consider seeking advice from an accountant.  They will be able to review your circumstances to ensure that you claim any reliefs and deductions available, in order to minimise your liability to tax. 

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Property Tax Advice from TaxAssist Accountants