Do I Need To Complete A Self-Assessment Tax Return?

Self Assessment is a system HMRC uses to collect Income Tax. For those employed, Tax is usually deducted automatically from wages and pensions. People and businesses with other income (including COVID-19 grants and support payments) must report all income on a Self-Assessment Tax Return.

You must submit a Tax Return, if from the last year (6 April 2022 – 5 April 2023) you were:

  • Self-employed as a sole trader and earned more than £1,000 (before deducting any tax relief)
  • A partner in a business partnership.
  • A Company Director and had income on which tax is due that is not taxed under Pay As You Earn (PAYE).
  • You have Capital Gains Tax to pay which hasn’t already been paid in-year.
  • You earned £100,000 or more.

You may also be required to file a Tax Return if you have any other untaxed income such as:

  • Rental property income.
  • Income from investments, dividends, and savings.
  • Foreign Income.
  • Tips and commissions received.
  • Covid grant or support payments.

If your income or your partner’s income exceeds £50,000, you may need to file a Tax Return and pay high-income child benefit charge.

You must also complete a Self-Assessment Tax Return for an individual who has died, where HMRC has requested the completion of a Tax Return. 

There may be other benefits to submitting a Self-Assessment Tax Return such as:

  • To be entitled to claiming income tax relief.
  • To prove you’re self-employed to claim tax-free childcare or maternity allowance.

Check here to confirm if you need to submit Self Assessment Tax Return

When Do I Have To Register For Self-Assessment?

You must usually register with HMRC for Self Assessment by 5 October following the end of the tax year in which the income or gains first arose, otherwise penalties may be applicable.

If you have reported a property disposal within 60 days, you may still need to register separately for Self Assessment.

What Is The Deadline For Filing My Self-Assessment Tax Return?

HMRC must receive your tax return and any tax you owe by the following dates:

  • By midnight 31 October 2023 – Deadline for filing paper Tax Returns (You will need to contact HMRC to request a paper tax return).
  • Midnight 31 January 2024 – Deadline for filing online Tax Returns.
  • Midnight 31 January 2024 – Deadline to pay any outstanding tax you owe.
  • If the Tax you owe exceeds £1000.00, there’s usually a second payment deadline of 31st July if you make advance payments towards your bill (known as ‘payments on account’).

If your partnerships accounting date is between 1 February and 5 April and one of your partners is a limited company, HMRC must receive your tax return by:

  • 12 months from the accounting date – for online Tax Returns.
  • 9 months from the accounting date – for paper Tax Returns.

HMRC Penalties For Late Filing and Payment

You’ll get a penalty if you need to send a Tax Return and you miss the deadline for submitting it or paying your bill – Check here for more information

Using An Accountant To Prepare Your Self-Assessment Tax Return

The Self Assessment process can be a daunting one – By using an expert, you will have complete peace of mind that your tax affairs are in safe hands and the return has been completed accurately and on time, ensuring tax payments or refunds are correct. 

We will hold your hand throughout the process, guide you on information required to allow us to accurately prepare your return and clearly explain tax payments (or refunds) due to ensure you remain HMRC compliant.

HMRC occasionally raise questions and investigate tax returns – This does not mean anything is wrong, but it can cause stress. We offer clients the opportunity to subscribe to insurance which covers our costs of supporting you through a tax investigation, should it arise.

For more information on how we can support you with Self-Assessment preparation and tax planning, please get in touch with us now.