As an LLP member, you will have to complete a personal tax return each year. Thankfully, the OC team is on-hand to manage the entire process from start to finish and submit the finalised return on your behalf once you have had a chance to review it. To ensure that this process runs as smoothly as possible, we will get in touch with you a few times throughout the year to ensure that your personal information and income details are correct and up-to-date. If you already have an accountant or financial adviser who deals with your tax affairs and you want them to continue to do so, that’s absolutely fine – we will just need to be put in touch with your adviser in order to provide details of your LLP membership.
The below sections go into more detail on information you may need to provide to us.
Information needed: we should already have all of the information we need regarding your student loan, but we will ask you to confirm that the information we have is correct.
As a member of an LLP, your loan repayments are paid on your behalf by the LLP that you belong to. These payments are made annually, not monthly, so don’t worry if your repayment schedule with the Student Loans Company does not tally with what you think it should say based upon your monthly pay deductions. More information on how Student Loan Repayments work as an LLP member can be found here.
OTHER JOBS, SELF-EMPLOYMENT OR FREELANCE WORK
Information needed: if you have had income from other jobs during the tax year (6 April 2018 – 5 April 2019) – i.e., a job you have left or another job or part-time work you do alongside your current job – you will need to provide the figures from your P60s or P45s for those companies. Keep these forms on file, as you will need to provide us with the relevant numbers from them.
If you have been self-employed or have done freelance work, you can contact us directly and we can tell you exactly what info we need. It’s likely just the amount of income you have earned from your freelance work, but we also take into account any expenses incurred. This is information you will need to keep track of yourself, and provide to us when needed.
- Your P60 is a form that tells you how much you have earned in the tax year (and how much tax you’ve paid) with that employer. Your employer normally gives you these forms in May every year, and they normally look like this.
- Your P45 is a form given to you when you leave a job. Your employer should automatically give this to you when you leave. If you have left a job and they haven’t given it to you yet, you can ask them for it. It has the same information as the P60 but normally looks like this.
Information needed: the amount of interest that has been paid to you from any of your bank accounts (that pay interest). This information will be on the annual statement from your bank or on your monthly statements, if you get them.
When you receive bank interest it does not normally have any tax deducted (it is normally paid gross). The total amount of interest received needs to be included on your return.
Banks normally only pay interest on savings accounts but some current accounts pay a small portion of interest as well. Your bank will issue you with a yearly statement (normally in April or May), which reports how much interest you have been paid.
If you can’t find your yearly statement, look at your monthly bank statements. We do not need any information regarding ISAs or National Savings Premium Bonds, as they are tax-free.
DONATIONS TO CHARITY – GIFT AID
Information needed: you just need to know how much you donated to charity through Gift-Aid from 6 April 2018 to 5 April 2019. Whether it was one-off lump sum or you gave a regular amount monthly, just add it all together and provide us with the total amount.
Gift Aid donations are regarded as having been made by you, from income that has already had tax deducted. Charities take your donation – which is money you’ve already paid tax on – and reclaim that tax from HMRC. This means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity.
RENTAL PROPERTIES YOU OWN
Information needed: we will need to know what rental income you have received for any properties you own in the period from 6 April 2018 – 5 April 2019, along with any related expenses (including mortgage interest etc.) for those properties.
If you receive rental income from a property you own during the tax year, you will need to provide us with details of the income received, the mortgage interest and any allowable expenses. We would recommend keeping track of this information on a spreadsheet to ensure that any tax due is correctly calculated.
Additionally, if you have sold any properties (other than your own home) for more than you paid for them, you may have made a profit (a ‘Capital Gain’) and we will need to know the details.
Have the following information ready for your tax return: date of sale, amount received, original costs and expenses (agents fees, etc.), and anything else you think might be relevant.
Shares, divides or other investments
Information needed: we need to know what income/dividends you have received from your investments in the period from 6 April 2018 – 5 April 2019. This includes shares in companies and unit trusts. You will find this information on the statements provided by whoever you’ve invested your money with. Have this information on file as we will ask you for the relevant numbers.
If you have sold any investments for more than you paid for them, you may have made a profit (a ‘Capital Gain’) and we will need to know the details. Have the following information ready for your tax return: date of sale, amount received, original costs and expenses (brokers fees, etc.), and anything else you think might be relevant regarding this investment.
CHILD BENEFITS – HIGH INCOME CHARGE
If you or your partner are in receipt of Child Benefit, and at least one of you earns over £50,000 per year, the higher earner within the household will need to declare this on their tax return. If you fulfil this criteria, you will need to provide us with the amount of Child Benefit your household receives and the number of children you receive it on behalf of.
Any information you provide to us for the purposes of completing your tax return is strictly confidential and is processed in accordance with the EU General Data Protection Regulation (GDPR) – we will never ask you to provide information unrelated to your tax returns, and we will only communicate with you personally about your tax affairs; if you are ever unsure about the legitimacy of correspondence you receive, please contact us.