What is a self-assessment?
A self-assessment is a system HMRC use to collect Income tax, which is not collected automictically via your wages or pension income.
The personal tax year covers income received between 6th April - 5th April each year. You have until the following 31st January to report and pay any taxes due.
For example the 23/24 tax covers income between 06/04/2023 - 05/04/2024 and you have until 31/01/2025 to report and pay any taxes.
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 Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
you had to pay the High Income Child Benefit Charge
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
What do I do if I need to send a tax return?
First you will need to ensure you have registered for Self-assessment and HMRC will issue you with a UTR (unique tax reference). You will need to do this by 05/10/2024 for the 23/24 tax year.
Once you have your UTR in place, you can then file your self-assessment through HMRC's systems or appoint an accountant / tax advisor to assist you.
If you would like support on anything raised or to see how HPC Accountancy could support you and save you tax, get in touch today!
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