Do I need to submit a Self Assessment tax return (SA100)?
What is Self Assessment?
Self Assessment (form SA100) is the way HMRC find out how much income tax and national insurance you need to pay on any income sources that are not taxed at source. For example if you earn income as a sole trader, rent out property or receive investment income.
If you earn less than £1,000 from self employment work (or your hobby) you can claim the trading allowance and do not need to tell HMRC or register for self assessment.
Reasons you may need to register for self assessment:
- Earn more than £1,000 from self employment
- Receive rental income
- Are part of a business partnership
- Receive dividend income as a director or shareholder
- Receive other untaxed income from investments
- Receive overseas income
- Are employed but earn more than £150,000 per annum
- Earn more than £60,000 and receive child benefit.
Is there a deadline for registering or filing your self assessment tax return?
If you need to complete a tax return you should register with HMRC by 5 October following the end of the tax year you need to submit. You can register online using your Government Gateway account or your accountant can do this for you. The tax return will then need to be submitted by 31 January following end of the tax year along with any income tax or national insurance payable. Filing after this date will result in an automatic penalty of £100 and this penalty increases as time passes.
If HMRC issues a tax return for you to complete you are legally obliged to submit it, even if you do not owe any tax. Failure to do so will result in a penalty.
How do I complete my self assessment tax return?
You can complete your self assessment tax return online using your Government Gateway account. The process has been designed to assist you in completing the correct sections depending on your circumstances by asking a series of questions about the type of income you have. You can also ask an accountant to complete the form for you.
If you are not sure whether you need to submit a tax return or are concerned that you have missed the registration deadline, please contact us for further information.