Although many people are employed and pay the correct amount of tax through the PAYE system, there are some people who fulfil specified criteria for self assessment. There are many reasons why a person may need to complete a self assessment tax return, including being self employed, or receiving income above a certain level. There are various types of tax return, which is dependent on the income category.
Directors and individuals
You may need to complete a tax return if you are a director of a company, pay tax at the higher rate, or if your tax affairs are complex. If you decide to fill in and submit your return online, you will have an extra three months to complete the form, and it can easily be tailored to meet your individual requirements. You may be able to complete a short tax return, which is called a SA200, but HMRC will usually inform you if this is the case. All others will have to complete a form SA100, which is where you will provide personal details and basic income information. You may need supplementary pages to declare all income and claim any expenses, tax reliefs, or allowances.
If you are self employed, you will still have to complete form SA100, but you will also be expected to complete another form that is dependent on your level of turnover. If you have turnover below £79,000, you will have to complete form SA103S, and if your turnover is above this amount, you will complete form SA103F.
If you are in a partnership, you will fill in the form SA100 with your own tax affairs. Supplementary document SA104 will be required to provide details of the partnership, while every partner will be asked to complete the form SA800, which outlines the details of income and any losses. The nominated partner is usually responsible for the completion of the main partnership return. However, any interest or penalties incurred as a result of the tax return being filed late will be the responsibility of each partner.
If you are a trustee, you will be asked to complete a tax return by HMRC. You will complete form SA900 each year, as long as the trust remains in existence. You may have to complete other pages in addition, depending on the type of income you receive. You may have to complete supplementary pages for any rents received from property and land, or report gains or income from overseas on foreign income pages.
If you are not sure whether you need to complete a tax return, seek professional advice.
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