There are a number of reasons why a taxpayer needs to complete a Self-Assessment tax return. This includes if they are self-employed, a company director, have an annual income over £100,000 and / or have income from savings, investment or property.
Taxpayers that need to complete a Self-Assessment tax return for the first time should inform HMRC as soon as possible. The latest date that HMRC should be notified is by 5 October following the end of the tax year for which the Self-Assessment tax return needs to be filed. Following the self assessment registration every year the tax return must be filed no later than 31 January following the end of the tax year.
In certain circumstances, HMRC also asks taxpayers to complete tax returns. HMRC has an online tool that can help taxpayers ascertain whether they are required to submit a Self-Assessment tax return.
The list of taxpayers that are likely to be required to submit a Self-Assessment tax return includes:
- Individuals earned more than £1,000 from self-employment;
- Taxpayers who had £2,500 or more in untaxed income;
- Those with savings or investment income of £10,000 or more before tax;
- Taxpayers who made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax;
- Company directors – unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car;
- Taxpayers whose income (or that of their partner’s) was over £50,000 and one spouse/partner claimed Child Benefit;
- Individuals who had income from abroad that they needed to pay tax on;
- Taxpayers who lived abroad and had a UK income;
- Individual with an income over £100,000.
For more information on the mechanics of completing your Self-Assessment tax return have a look at HMRC’s useful guide on How to Fill In Your Tax Return Online or call us on 01865 548465 or use our online contact form.
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