Self-Assessment is a system used to pay your income tax to HM Revenue and Customs (HMRC). Although tax is usually deducted automatically from wages, pensions and savings, it is your responsibility to find out if you need to file a self-assessment return and to complete and submit it accordingly. The tax year runs from 6th April to 5th April the following year.
Here's when you would need to complete a Self-Assessment return:
If you're self-employed and earned more than £1,000
You are a partner in a business partnership
You are a company director
You earned more than £2,500 in untaxed, unearned income
Your income from renting out property was more than £2,500
Your claims for expenses are £2,500 or more
Your income from savings and investments was £10,000 or more before tax
You have an annual income of £100,000 or more before tax
You receive annual income from a trustee or settlement
You receive income from the estate of a deceased person and further tax is due
You or your partner receive child benefit and your income is over £50,000
You need to pay Capital Gains Tax on profits from investment disposals or a second home
You have income from abroad you need to pay tax on
You live abroad but have an income in the UK
If you earned over £46,351 in the 2018/19 tax year and make pension contributions
HMRC may also want you to complete a return for other reasons.
If you require any help with tax advice or completing a self-assessment return, speak to us today on 01268770099.
You can also check if you need to complete a return via the government website - https://www.gov.uk/check-if-you-need-tax-return