Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

There are a number of reasons for having to complete a self assessment tax return. Being self employed is one of the main reasons for having to complete tax returns, but there are also other reasons, including being a company director or minister, or having savings income which is above a certain level. Savings or investment income which is above £10,000 will mean that a tax return has to be completed. Income from property which is above £10,000 before the deduction of allowable expenses will also require a tax return. If income from property is below £2,500 after deduction of allowable expenses, the amount may be collected through the PAYE tax code without the need for a self assessment tax return. If an individual is aged 65 or over and has reduced age allowances, it will be necessary to complete a tax return unless the person receives only a state pension and one other source of income. Receiving income from overseas, income over £100,000 or claiming certain expenses or tax reliefs over £2,500 will require the completion of a self assessment tax return.

There are many other reasons for having to complete a tax return. Some of the less common tax reliefs have to be claimed by completing a tax return each year, like Venture Capital Trusts and Enterprise Investment Scheme relief. If you owe tax to HMRC you may be able to have this amount included in your PAYE tax code, so that the amount is spread over a full tax year. However, if this isn’t possible for any reason you will have to complete a self assessment tax return. If you owe tax to HMRC but don’t want to include the amount in your tax code, you can complete a tax return and make a direct payment instead.

If an individual has very simple tax affairs and pays tax through Pay As You Earn, it will be unlikely that they will have to complete a tax return. However, having several sources of income or income which exceeds a specified limit will require a tax return. If you have straightforward tax affairs and don’t need to complete a tax return, you should still notify HMRC if your circumstances change, as you may need to complete a return in the future. If you do need to complete a tax return, you will receive a self assessment return which is tailored to your circumstances. For instance, if you are self employed, you will complete a tax return for an individual with a self employment page. If you are employed, you will complete an employment page in addition to the main tax return. There are pages for various circumstances which you can request from HM Revenue & Customs.

If you believe you are required to complete a tax return you should register for self assessment, which can be done by phone or online. A Unique Taxpayer Reference number will be sent to you which will be used in all future communications with HMRC. A letter will be issued by HMRC to let you know that a self assessment tax return has to be completed, which you will receive each year a return is required. There are different deadlines for completion of the self assessment tax return depending on whether you file a paper tax return or submit your tax return online. The deadline for filing a paper tax return is 31st October and filing online must be completed by 31st January.

If you are not sure whether you need to complete a tax return, it is advisable to contact HMRC to avoid unnecessary penalties.

guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.