Self Assessment Tax Return Deadline is looming, do you need to complete a return?
Most taxpayers do not have to fill in a tax return. If HMRC thinks you are paying the right amount of tax through the Pay As You Earn (PAYE) system on your wages or salary, or on an occupational pension, they will not send you a tax return but we always advise checking to make sure, otherwise you could face a £100 penalty.
Read below to find out more....
Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.
Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.
If you need to send one, you fill it in after the end of the tax year (5 April) it applies to.
Who must send a tax return
You must send a tax return if, in the last tax year (6 April to 5 April), you were:
self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
a partner in a business partnership
You will not usually need to send a return if your only income is from your wages or pension. But you may need to send one if you have any other untaxed income, such as:
money from renting out a property
tips and commission
income from savings, investments and dividends
Check if you need to send a tax return if you’re not sure.
Other reasons for sending a return
You can choose to fill in a tax return to:
claim some Income Tax reliefs
prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance
If you get Child Benefit
Send your tax return by the deadline.
If you did not send an online return last year, allow extra time (up to 20 working days) as you’ll need to register first. There are different ways to register if you’re:
Filling in your return
You need to keep records (for example bank statements or receipts) so you can fill in your tax return correctly.
You can get help filling in your return.
Paying your bill
HMRC will calculate what you owe based on what you report.
Pay your Self Assessment bill by 31 January.
How to get help
If you need help with Self-Assessment, you can:
appoint someone to fill in and send your tax return, for example an accountant, friend or relative - you can find an accountant accredited in the UK.
contact HM Revenue and Customs (HMRC) for general Self Assessment enquiries
Help filling in your return
There’s introductory guidance on GOV.UK to:
Capital Gains Tax if you’ve sold certain things like property or shares
Child Benefit if your income’s over £50,000
tax on income from renting property
tax on savings interest
tax returns for business partnerships
Guidance notes and help sheets
You can also read guidance in:
HMRC’s Self Assessment helpsheets
Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.