Do I Need To Complete A Self Assessment Tax Return?
The financial year just ended, on April 5th, 2021. Many of you now likely need to complete a self assessment tax return to let HMRC know what income you made throughout the year.
You will need to complete one if:
You are working for yourself – you are self-employed;
You are a partner in a partnership business;
You are a minister of religion – any faith or denomination;
You are a trustee or the executor of an estate.
You may also need to complete a Self Assessment tax return if:
You are a company director, if you have income that is not taxed under PAYE;
You have untaxed income. This could be, for example, interest that is not taxed before it is paid to you or rental income. If you are an employee or a pensioner and the income (profit) is less than £2,500 a year you might not have to complete a tax return but it is still your responsibility to report such income by contacting HMRC. If you receive other untaxed income and the tax due on it cannot be collected via your PAYE coding notice you will need to complete a tax return;
You receive regular annual income from a trust or settlement, or you receive income from the estate of a deceased person and further tax is due;
You have taxable foreign income (although there is an exclusion if your foreign income consists solely of less than £300 of dividend income).
You are non-resident and you have taxable income in the UK. This includes non-UK resident landlords. You can find out more on GOV.UK;
You have income from savings and investments of £10,000 or more before tax;
You have annual income of £100,000 or more before tax;
You or your partner receive child benefit and your income is over £50,000. This is because of the high income child benefit charge;
You have tax due at the end of the year that cannot be collected via your PAYE coding notice in a later year;
Your untaxed income is £2,500 or more – but if you are a pensioner you may be able to pay your tax through your PAYE Coding Notice;
Your claims for expenses are £2,500 or more;
You have capital gains where:
You have given away or sold assets worth £49,200 or more for 2020/21; or
You have a capital loss but your gains net of any losses are more than the annual exemption for 2020/21 of £12,300; or
You have no losses to claim but your gains are more than the annual exemption for 2020/21 of £12,300; or
You need to make any other capital gains tax claim or election for the year.
HMRC may also need you to fill in a self assessment for a variety of other reasons as well. Speak with us and we can help you figure out what you need to file.