Do I Need to File a Self-assessment Tax Return?
What is a self-assessment?
HM Revenue and Customs (HMRC) uses Self-Assessment Tax Returns to collect Income Tax from individuals. Usually, taxes are automatically deducted from salaries and pensions. However if you have additional income, you must declare it by filing a tax return.
Who needs to submit a Self assessment?
There is a requirement to file a tax return if any of the following conditions were applicable to you during the previous tax year (from 6th April to 5th April):
- Self-employed as a ‘sole trader’ and earned more than £1,000 (before deducting any eligible tax relief).
- CIS Contractor
- A partner in a business partnership.
- Earned £100,000 or more.
Additionally, you need to submit a tax return if you received any untaxed income, such as:
- COVID-19 grants or support payments.
- Rental income from property.
- Tips and commissions.
- Income from savings, investments, and dividends.
- Foreign income.
If you receive Child Benefits.
- If you or your partners’ taxable income exceeded £50,000, you may need to submit a return and pay the High-Income Child Benefit Charge.
If you are unsure as to whether you need to submit a tax return you can use the following link to do so: https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return
Completing a tax return can have multiple benefits. You have the option to submit a tax return for various reasons:
- Claim certain Income Tax reliefs – The following link contains more information about claiming expenses for working from home https://www.helpboxuk.com/working-from-home/
- If you need to claim Tax-Free Childcare or Maternity Allowance as a self-employed individual, you will need to provide documentation as proof of your status.
How do I submit a tax return?
To fulfil your tax obligations, the initial step is to enroll for Self-Assessment in order to obtain a Unique Taxpayer Reference (UTR). You can use the following link to register for self assessment: https://www.gov.uk/register-for-self-assessment
If you need any help or advice with regards to filing a Tax return please contact us at https://www.helpboxuk.com/contact/