How to Check If You Need to Submit a Self-Assessment?
Tax compliance with HM Revenue and Customs (HMRC) requires a proper understanding of your responsibility for self-assessment tax return submission. The Self-Assessment system enables tax collection of Income Tax from individuals who have untaxed income. Failure to file your return when required will lead to penalties from HMRC. This resource explains why certain people must file Self-Assessment tax returns, as well as shows how to check if you need to submit a Self-Assessment and describes the consequences of non-compliance.
Need help with your Self Assessment Tax Return? Let us make it simple for you.
What is A Self-Assessment Tax Return?
A Self-Assessment tax return is a system used by HMRC to collect Income Tax from individuals who don’t have it deducted automatically from wages or pensions. You must account for your self-employment income with expenses to determine your tax amount while making the deadline payment when the deadline arrives.
Who Needs to Submit a Self-Assessment Tax Return?
You must file a Self-Assessment tax return if you meet any of the following conditions:
1. Self-Employment Income
All self-employed individuals conducting business as a sole trader need to register for Self-Assessment and file returns when their taxable income surpasses £1,000 before expenses.
2. Business Partnership
You must file a separate tax return as a business partnership member while the partnership company files its own income statement.
3. Rental Income
You must inform HMRC about your rental earnings from property ownership. Every landlord with rental income below £1,000 must still consider taxation regardless of their total earnings.
4. High Earners
People earning more than £100,000 annually need to submit their Self-Assessment tax return independently from their PAYE tax deduction system, even if they are employed.
5. Child Benefit and High-Income Charge
People earning more than £60,000 per year who have Child Benefit must pay the High Income Child Benefit Charge to HMRC. The requirement of filing a Self-Assessment tax return exists for declaration and payment of this charge.
6. Foreign Income
All types of income gained from foreign sources that carry UK tax liabilities need declaration through Self-Assessment.
7. Earning from Savings
Reporting through Self-Assessment becomes necessary when you receive more than £10,000 of interest income or dividends or savings income.
8. Capital Gains Tax Liabilities
A tax return becomes necessary when you sold assets, including property, stocks or shares and earned profits exceeding the Capital Gains Tax Allowance.
9. Other Situations
The filing of Self-Assessment tax returns through HMRC is necessary for people who earn money from freelance work or side businesses, together with earning from gig economy activities and receiving tips.
How to Check If You Need to Submit a Self-Assessment
The HMRC offers an online test to show how to check if you need to submit a Self-Assessment tax report. You can find this tool at Check if you need to send a tax return. The tool requires you to tell it about your earned income and personal finances so it can show if you need to file taxes. Contact HMRC directly or hire an accountant to determine your tax return requirements because uncertainty leads to tax penalties.
Important Deadlines for Self-Assessment
Check the deadline to submit your Self-Assessment tax return when you decide must file it.
Key Dates to Remember:
- Register for Self-Assessment: By 5 October, after the tax year ends.
- Paper Tax Return Submission: By 31 October of the following tax year.
- Online Tax Return Submission: By 31 January of the following tax year.
Any tax payments for self-assessment must reach the government office by 31 January. To avoid added expenses, you need to submit your taxes before their self-assessment tax return filing deadline and pay everything by schedule.
Penalties for late Submit Tax Return
When you fail to submit your Self-Assessment tax return on time, then the HMRC will issue penalties:
- £100 fine immediately after the 31 January deadline.
- Additional fines of £10 per day after three months.
- Further penalties after six months and twelve months.
These fines increase if you intentionally fail to report taxable income.
Conclusion
People should know how to check if they need to submit a Self-Assessment tax return to HMRC to stay tax compliant and sidestep fines. People who generate income from self-employment, property rentals, or dividends without tax deductions must complete their Self-Assessment tax return. Using HMRC’s online tool and maintaining proper financial records helps you know your tax return submission requirements. Taking guidance from tax experts helps you properly handle your tax duties when you are unsure.
Get in touch with our young, clever, and tech-driven professionals if you want to choose the solution to tax burden or accounting problems in the UK for your income. We will ensure to offer the best services.
