What you need to know about your Self Assessment Tax Return
HMRC estimates that more than 12 million people in the UK complete a Self Assessment tax return each year. If you are eligible, you must complete and file your Self Assessment tax return each year, either yourself or through an accountant. Failing to do so can result in heavy penalties, so it’s always worth checking whether you meet the criteria.
How do I know if I have to file a Self Assessment tax return?
HMRC requires the following individuals to submit a return:
- Those who are self-employed
- Company directors (excluding those of non-profit organisations that didn’t receive pay or Benefits in Kind)
- Those who received £2,500 or more in untaxed income in the past tax year
- Those who rented out a property and made more than £1,000 in the past tax year
- Those who gained income of £10,000 or more (before tax) from dividends or shares
- Those who made gains from selling shares or second properties and were required to pay Capital Gains Tax
- Those with a partner receiving over £50,000 in income, where one of you is claiming Child Benefit
- Those with taxable income from abroad
- Those living abroad by with a UK based income
- Those with a taxable income of over £100,000
- Trustees of a trust or registered pension scheme
- Those who receive a P800 from HMRC saying they didn’t pay enough tax last year
- Those whose State Pension exceeded their Personal Allowance and was their only source of income
As you can see, the list includes a wide range of people in different circumstances, so if your situation has recently changed, it’s always worth checking to see if you have become eligible for Self Assessment. If you are eligible in the last tax year (from 6 April 2022-5 April 2023) you have until 31 January 2024 to complete your Self Assessment and make the necessary payment to HMRC. If you’re unsure what to do, the easiest course of action is to engage an accountant to help with Self Assessment. That way, you can be sure your tax is calculated correctly, your return is completed properly and you don’t miss the Self Assessment deadline.
What happens if I don’t do a Self Assessment tax return?
If you don’t submit your tax return to HMRC on time, you will have to pay a penalty. The amount depends on how late it is. If the return is up to three months late, the penalty is £100. You may also be liable for any interest on both the amount you owe and on your penalty.
Calculating Self Assessment tax needn’t be a burden. With the help of a Self Assessment accountant such as the experts at Ibiss and Co, you can ensure you pay the correct amount of tax on time. Based in Barking, Tooting and Walsall, our Chartered tax advisers offer specialist help to people in a variety of circumstances. Contact us today to discuss your needs.