Frequently Asked Questions
General Tax Return Questions
Q: Do I need to complete a Self Assessment tax return?
A: You’ll need to if you’re self-employed, earn rental income, have savings or investment income, or your total income exceeds certain thresholds. We can help you check if you’re required to file a return. It’s always better to confirm early than risk a fine later.
Q: When is the Self Assessment deadline?
A: The online deadline is 31 January, and the paper deadline is 31 October following the end of the tax year (which runs 6 April – 5 April). So for example, the tax return for the 2024/25 tax year must be filed by 31 January 2026.
Q: What happens if I miss the deadline?
A: HMRC issues an automatic £100 penalty, even if you don’t owe tax. After 3 months, additional daily fines apply.
Q: What documents do I need to complete my return?
A: We’ll provide you with a clear checklist but common items include:
a) P60 or P45 (employment income)
b) Invoices or accounts (self employment)
c) Bank interest statements
d) Dividend vouchers
e) Rental income summaries
f) Pension and investment details
Q: How long should I keep my tax records?
A: HMRC recommends you keep them for at least 5 years after the submission deadline, or 6 years if you’re self-employed.
Q: Can you deal directly with HMRC for me?
A: Yes — once authorised as your tax agent, we can speak to HMRC on your behalf to handle any queries or correspondence.
Q: What if I’ve never filed a tax return before?
A: That’s okay — we’ll register you for Self Assessment, gather your information, and take care of everything from start to finish.
Landlord & Property Tax Questions
Q: What expenses can I claim as a landlord?
A: Allowable expenses include letting agent fees, repairs, maintenance, insurance, utilities, council tax, and replacement of domestic items. Don’t worry, we’ll help you identify everything you’re entitled to claim.
Q: Can I still deduct mortgage interest?
A: Not fully. Since 2020, landlords receive a 20% tax credit on mortgage interest instead of full relief.
Q: How do I report my rental income?
A: Your rental income is reported through your Self Assessment tax return.
Q: I live abroad but own UK property — what are my obligations?
A: Non-resident landlords must still report UK rental income to HMRC. There are special rules for non resident landlords, we’ll help you register under the Non-Resident Landlord Scheme and manage your annual returns.
Q: What if I make a loss on my rental property?
A: You can usually carry the loss forward to offset against future rental profits — reducing future tax bills.
Q: Do I need to pay tax on Airbnb or holiday lets?
A: Yes, but different rules may apply.
Q: Can I claim the cost of refurbishments?
A: It depends. Routine repairs are deductible, but improvements (like extensions or new kitchens) are capital expenses and may count towards Capital Gains calculations later.
High Earners & Professionals
Q: What’s the difference between higher-rate and additional-rate taxpayers?
A: For 2025/26, you’ll pay:
40% tax on income over £50,270 (higher rate taxpayer)
45% tax on income over £125,140 (additional rate taxpayer)
Q: How does pension saving reduce my tax?
A: Contributing to a pension can extend your basic rate band, meaning more of your income is taxed at 20% instead of 40% or 45%.
Q: Can I claim expenses if I’m employed?
A: Yes, for certain costs your employer hasn’t reimbursed, such as professional subscriptions, uniforms, or travel for work.
Q: I receive dividends — how are they taxed?
A: Dividends attract different rates of tax than other forms of income. Each taxpayer is entitled to £500 of dividend income tax-free, and anything above that is taxed at either 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional Rate).
Q: What’s the High Income Child Benefit Charge?
A: If you or your partner earn over £60,000, some or all of your Child Benefit may need to be repaid.
Capital Gains & Inheritance Questions
Q: How do I calculate Capital Gains Tax on a property sale?
A: We take the sale price, deduct your purchase price and allowable costs (like legal fees and estate agent fees), then apply reliefs and your annual allowance.
Q: What if I sell shares or investments?
A: Capital Gains Tax also applies to investment profits above your annual exemption. Make sure you take advice when buying and selling shares (& cryptocurrencies!)
Q: Can I reduce my Capital Gains Tax bill?
A: Yes — by using your annual exemption (£3,000), offsetting losses, or claiming specific reliefs such as Business Asset Disposal Relief or Private Residence Relief.
Q: What happens if I inherit a property?
A: Inheritance itself isn’t taxable, but Capital Gains Tax may apply later if you sell the property for more than its inherited value.
Q: How is Inheritance Tax (IHT) calculated?
A: IHT is generally 40% on the estate value over £325,000, but reliefs and exemptions can significantly reduce this.
Q: Can gifts be taxed?
A: Most gifts are free of IHT if you live seven years after making them. Certain smaller or regular gifts are exempt immediately. Speak to us if you want to make gifts and are unsure of the implications of doing so.
Working With M & E Tax Partnership
Q: How does your process work?
A: Simple:
Book your free consultation and one of our team will chat through your circumstances and how we can help.
Once engaged as a client, you send us your info securely.
We prepare, review, and file your return.
You get confirmation and peace of mind.
Q: Can you handle multiple years at once?
A: Yes — if you’e fallen behind with your tax submissions, we can catch up on missed returns for several years and communicate with HMRC to bring your record up to date and seek to appeal any penalties where applicable.
Q: Is everything done online?
A: Yes (but it doesn’t have to be!) — nowadays most clients prefer digital. We handle everything securely online or by phone, making it quick and convenient no matter where you are in the UK.
Q: How long does it take to file my return?
A: Once we have all your documents, we can usually complete and submit your return within 5–10 working days.
Q: What makes M & E Tax Partnership different?
A: We’re not just ‘number-crunchers’ — we’re approachable, experienced tax specialists who take the time to explain your options clearly. Our service is personal, transparent, and built around your needs.
Still have questions?
We’re always happy to help.
If you have a question that isn’t listed here, contact us today — we’ll get you a clear answer fast.