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ShareWritten by: Steven Chand
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 and pensions. People and businesses with other income , must report it in a tax return.
Who must send a tax return
You must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:
- you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
- you were a partner in a business partnership
- you had a total taxable income of more than £150,000
- you had to pay the High Income Child Benefit Charge
- you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
You may also need to send a tax return if you have any untaxed income, such as:
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income
When do you need to register for Self-Assessment?
You must tell HMRC by 5 October if you need to complete a tax return and you have not sent one before.
Preparing & submitting your Self Assessment return can be stressful – but it doesn’t have to be! Follow our guide to help you how to prepare for Self Assessment or alternatively let us take care of it on your behalf, leaving you to do what you do best…running your business !
You can prepare & submit your Self Assessment return, anytime after the start of the new Tax year- 6 April onwards, it is better to submit it, in advance of the 31 January deadline, leaving you to concentrate on what you do best !
