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Do you need to complete a Self-Assessment tax return?

Do you need to complete a Self-Assessment tax return?

If you're uncertain about whether you need to register for Self-Assessment, consider the simple factors below that may require you to file one. Additionally, be aware of the key dates that are crucial for submitting tax returns.

 

What is a Self-Assessment tax return?

Self-Assessment tax returns are a system HMRC uses to collect Income Tax. If your tax isn’t automatically deducted from wages, pensions, or savings, you might need to file a Self-Assessment tax return to report your income and pay tax.

 

Who Needs to Register?

You must register for Self-Assessment if any of the following apply:


  1. Self-Employed – Whether you’re running your own business, freelancing, or doing gig work (Uber, Deliveroo, etc.), you must register if your income is over £1,000 in a tax year.

  2. High Income (over £150,000) – If you earn more than £150,000 a year - even if you’re under PAYE - you’ll need to complete a tax return for 2023/24.  This is set to be removed for the 24/25 tax year so even if you earn over this amount through PAYE, you will not be required to register unless you have another reason to do so.

  3. Earning Untaxed Income – This includes income from:

    • Rental property (over £1,000)

    • Dividends from investments (over the dividend allowance of £500 for the tax year 24/25)

    • Savings interest (there is a tax free allowance depending on your tax band)

  4. Partnerships – Partners in a business partnership must file a tax return.

  5. Child Benefit – If your income is over £60,000 and you or your partner claim Child Benefit, the "High Income Child Benefit Charge" applies, and you’ll need to submit a return.

  6. Capital Gains – If you’ve sold assets (like shares or a second home) and made a profit, you may need to declare and pay Capital Gains Tax.  (If you’ve sold a residential property, you will also need to complete a property return within 60 days of the sale.)

  7. Foreign Income – If you receive income from abroad, this might need to be reported depending on the tax treaties between countries.


Sometimes small amounts of additional income over the various allowances can be reported through your tax code but you will need to contact HMRC and let them know the amounts.


When should you register by?

The deadline to register is 5th October following the end of the tax year in which you earned the income. For example, if you started earning self-employed income during the 2023/24 tax year (which runs from 6 April 2023 to 5 April 2024), you need to register by 5th October 2024.

 

Key Deadlines

  • Paper Return: 31st October (after the tax year ends)

  • Online Return: 31st January (after the tax year ends)

  • Payment Deadline: 31st January (after the tax year ends)

 

How to Register

You can register online via HMRC’s website. You'll need a Government Gateway account, so if you don’t have one, get that set up first. Once registered, HMRC will send you a Unique Taxpayer Reference (UTR) which you’ll need when filing your return.


Filing Penalties

It’s important to file on time—even if you have no tax to pay—to avoid fines. Missing the deadline results in an automatic £100 penalty, with further penalties and interest charges for continued delays.

 

Need Help?

If you’re still unsure about whether you need to complete a self-assessment, please contact our office for further support at 01206 392750.

 

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