Do you need to register for self assessment?
What do you need to complete your self assessment return?
Help is at hand…
What is self assessment?
Self Assessment is the UK system of reporting your annual taxable income and gains to HMRC. Part of the Self Assessment regime involves working out how much tax you must pay in the year.
You must complete a tax return if you are registered as self-employed (unless your income is below the £1,000 limit allowed) or you have received a notification from HMRC that you are required to complete a return.
Who needs to complete a self assessment tax return?
You might also need to complete a tax return if:
- You are a company director who is not taxed under PAYE.
- You are a partner in a business
- You have property income (that is above the £1,000 limit allowed)
- You wish to claim tax relief on employment expenses over £2,500 in the year.
- You mut pay the high-income child benefit charge
- You have untaxed savings income or dividends.
- You have capital gains which have not been paid in the year.
This list contains a few reasons why individuals are required to complete self assessment tax returns. However, a longer and more comprehensive list is available here www.gov.uk.
What information is needed to complete a self assessment tax return?
In order to complete your self assessment tax return, you require details of your taxable income and gains for the year. This would typically include:
- Details of self-employed income and expenses (or profit and loss accounts for the year)
- Details of property income and expenses (or your rental property accounts)
- Details of employment, pension income. (You will find that any forms received such as P60, P45 and P11D will be helpful).
- Details of any capital gains made in the year
- Details of any pension contributions made, especially if they are relief at source schemes.
What about penalties, if I get things wrong?
There are currently 4 penalties charged under self-assessment if you get things wrong. These are late filing penalties, late payment, failure to notify, and inaccuracy.
It is important to note that the first 2 are automatic penalties.
What is Making Tax Digital for income tax and when is it due to come into force?
The timeline for Making Tax Digital is a moving goal post. At present (August 2023) Making Tax Digital for Income Tax is due to be introduced in April 2026 for some taxpayers, with others joining from April 2027.
If you would like to speak to a member of our specialist personal tax team contact us or telephone us on 020 3697 7147. Or you can visit our web chat in the bottom right corner which is manned during office ours and you can leave a message out of hours.
The RPGCC team are always just a click or call away.
Online trading has seen rapid expansion in recent years with many high street businesses now switching online. This coupled with the growth of social selling through platforms such as Instagram, Facebook, Youtube, Snapchat and TikTok means that the number of social media influencers with a second source of income through an online “side hustle” is growing.
Do you have a side-hustle?
Are you treating your side-hustle income correctly?
Is your side-hustle now greater than your main source of income, or your only source of income?
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