What is a Self-Assessment tax return?
A UK Self-Assessment tax return is a document that you must complete if you have certain types of income, such as from self-employment, renting out property, or investments. You must also complete one if you have any untaxed income, such as savings interest or dividends.
This tax return is used by HM Revenue and Customs (HMRC) to calculate how much income tax you owe. The amount you owe will depend on your income and expenses.
Who needs to complete a Self-Assessment tax return?
Not everyone needs to complete a tax return. You only need to complete one if you have any of the following types of income:
- Income from self-employment
- Income from renting out property
- Untaxed income, such as savings interest or dividends
- Income from certain foreign sources
If you are not sure whether you need to complete a Self-Assessment tax return, you can check with HMRC.
How do I file a tax return?
You can file your return online or by post. The filing deadline (online) is usually 31st January following the end of the tax year.
If you file your return online, you can use the HMRC website. You will need to create a Government Gateway account and have your Unique Taxpayer Reference (UTR) number.
If you file your return by post, you can download a form from the HMRC website or call HMRC to request a form.
You must register for self assessment by the 5th October following the end of the tax year.
What are the penalties for not filing?
If you do not file your tax return on time, you could be fined by HMRC. The amount of the fine will depend on how late you are and how much tax you owe.
You could also be charged interest on any tax that you owe.
How can I get help with my Self-Assessment tax return?
If you need help with your tax return, you can get help from HMRC or from a tax adviser.
If you would like a free initial consultation to discover how we can help, please get in touch.