As HMRC change the personal allowances available for all individuals annually, more and more people are falling under the self-assessment criteria. If you have found yourself in this situation, let us take the hassle and worry out of self-assessment by getting us to submit your annual tax return.
What is Self Assessment?
Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.
Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.
Do I need to fill in a Self Assessment tax return?
- your self-employment income was more than £1,000
- your income from renting out property was more than £2,500 (you will need to contact HMRC if it was between £1,000 and £2,500)
- you earned more than £2,500 in untaxed income, for example from tips or commission.
- your income from savings or investments was £10,000 or more before tax.
- you need to pay Capital Gains Tax on profits from selling things like shares or a second home.
- you’re a director of a company (unless it was a non-profit organisation, such as a charity)
- you, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
- you have income from abroad you need to pay tax on, or you live abroad but have an income in the UK.
- your taxable income was over £100,000
- if you earn over £46,351 in the 2018/19 tax year (£50,001 for 2019/20) and make pension contributions you may have to complete an assessment to claim back the extra tax relief you’re owed
- you are a trustee of a trust or registered pension scheme
- your State Pension was more than your personal allowance and was your only source of income
- you received a P800 from HMRC saying you did not pay enough tax last year
You can also fill in a Self Assessment tax return if you want to make voluntary Class 2 National Insurance Contributions (NICs) to help you qualify for benefits such as the State Pension.
You do not need to fill in a Self Assessment tax return if you’re an employee who has paid tax through the Pay As You Earn (PAYE) system, unless you earned over £100,000.
Is completing a Self Assessment difficult?
Not really - but it can be time consuming and somewhat confusing - despite what HMRC tells you. We provide a simple and cost effective service to help with completing your self assessment tax return.
For more information on Self Assessment Tax Returns, please contact us.