A Self-Assessed tax return can be daunting. But if you have prepared your-self, organized and understand all the requirements, it’s very simpler than it seems. You just have to make sure that, you completely understand the form so you can file it accurately in order to avoid paying penalties.

You shall file a self-assessed tax return, if you are falling in any of the following category

• Your income from self-employment is more than £1,000.
• Your income from renting out property must be more than £2,500.
• You earned more than £2,500 over above untaxed income i.e. commission.
• Your income before tax (from savings or investments) is £10,000 or above.
• You are required to pay Capital Gains Tax on profits from selling capital goods.
• You are director of a company.
• If you or your partner’s income is above £50,000 and claiming Child Benefit.
• You are living out of UK but have UK based income.
• Your UK based taxable income is above £100,000.
• You received a tax calculation letter (P800) from HMRC stating you have not paid enough tax last year.

Other than above, you may file Self-Assessed tax return if you wish to make voluntary Class 2 National Insurance contribution in order to qualify for benefits such as the State Pension.

You shall only be required to file self-assessed tax return if you have income above £100,000. However, if you’re an employee who has paid tax through the Pay As You Earn (PAYE) system. This is unless you earned over.

Key dates:

As per the law, you are required to submit your tax returns for tax years instead of calendar years. i.e. for the 2022-23 tax year you would:

• Require to register for self-assessment by 5 October 2023 if you have never submitted any tax return before.
• Submit your tax return by 31 October 2023 (if you are filing a paper tax return).
• Submit your tax return by 31 January 2024 (if filing online).
• Pay the due amount of tax by 31 January 2024.

If you fail to meet any of the above deadlines, you might be charged penalty as well as interest on late payment.

Key Considerations:

Before starting the filing, you need to make sure:

• Your ten digits Unique Taxpayer Reference (UTR)
• Your National Insurance number.
• Detail of your untaxed income for the tax period i.e. self-employment, dividend income and interest on shares etc.
• Record any expenses relating to self-employment
• Any contribution to approved charity institution or pension fund.
• P60 or other record, showing income on which you paid zero (0) taxes.

How can we help you? 

If you have any further queries or looking for further assistance, feel free to reach Insights team for professional advice.