A self-assessment tax return is usually required for any taxable income which is not declared via PAYE. A self-assessment return must be submitted every year and it is your responsibility to do so, even if HMRC have not requested it.
Some may incorrectly assume that it is only those who are self-employed who need to submit the return, but this is not the case. There are many different types of income which need to be declared to HMRC through self-assessment. Some of the more common examples are:
- Interest from savings or investments
- Income from land or property
- Taxable income from abroad
- Untaxed income, for example tips or commission, of £2500 or more
- Profit from selling assets
- UK income if you are living abroad
You will also need to file a self-assessment tax return if you:
- Are a director of a limited company or a business partner
- Are trustee of a registered pension scheme or other trust
- Are a trustee or representative of someone who has died
- Have a total taxable income of more than £150,000
- Claim child benefit, if you or your partner’s income is over the High Income Benefit Charge threshold
- Are a minister of religion
- Need to claim tax relief on pension contributions if you’re a higher or additional rate tax payer
- Had to pay Capital Gains Tax when you sold something that increased in value
- Receive a P800 form from HMRC saying you didn’t pay enough tax in a previous year and have not yet paid the outstanding amount due
Please note, this list is not exhaustive and you should seek advice from a qualified professional if you are unsure whether you need to file a self-assessment tax return.
If it is the first time you have had to complete a self-assessment tax return, you will need to register with HMRC. You can do this online here – Check how to register for Self Assessment – GOV.UK (www.gov.uk) .
You will only need to register once and will be issued with a Unique Taxpayer Reference (UTR) number along with instructions on how to set up your Government Gateway Account which you will use to submit your return.
AM Wyatt & Co offer personal tax services to help with self-assessment and provide advice on personal tax issues. Get in touch to hear more about the help we can offer.