Self Assessment tax returns are how HM Revenue & Customs (HMRC) collect Income Tax and Capital Gains Tax from people who have not paid it through PAYE or other means.
Typically if your only income comes from wages, a pension or a small amount of interest on savings, then you won’t need to complete a Self Assessment tax return because the tax on these has already been deducted automatically.
How can we help?
Finch & Associates act for a wide variety of individuals, and we have experience in providing tailored advice to suit your needs. Our expertise and depth of knowledge will ensure that you have peace of mind that your tax affairs are all in order.
Who needs to file a Self Assessment Tax Return?
As a general rule, anyone who receives income that isn’t taxed at source needs to complete a Self Assessment.In the case of a sole trader, the income you receive from your trade doesn’t have National Insurance Contributions or Income Tax deducted from it, so you need to tell HMRC about that income on a Self Assessment form so they can calculate what, if any, tax you owe.
If you’re a limited company director, you’ll usually need to file a Self Assessment. Other examples of income not taxed at source can include rental income from any property you own, income from abroad, or investment (dividend) income.
The complete list of who needs to complete a Self Assessment is available on the Gov.uk website – the website also has an online tool that will tell you if you need to file a return.
When do I need to register for Self Assessment – do HMRC issue me a Self Assessment notice or do I need to contact them?
If you meet any of the criteria that mean you need to complete a Self Assessment, the first step is to register. You need to do this by the 5th October after the end of the relevant tax year.
Registering for Self Assessment isn’t an automatic process when you set up a limited company or register as self-employed, so you’ll need to notify HMRC of your situation. You can do this personally by phoning the Self Assessment Helpline on 0845 900 0444 or registering online.
Alternatively, if you are one of our clients, we can register you as part of our personal tax service. Our team of chartered certified accountants can prepare and submit your Self Assessment, please call the team on 01275 867350 or send us a message to find out how we can help you.