Do I Need to File A Tax Return?

Requirement to file a return

HMRC have issued an online tool for you to check whether you need to send a Self Assessment tax return.

Most taxpayers do not have to file a return as they are employees whose tax is deducted at source under the Pay as You Earn scheme (PAYE).  Taxpayers have to file a UK personal income tax return if one or more of the following applies to you:

• You are self-employed.

• You are a partner in a partnership.

• You are a religious minister, Lloyds’s underwriter, examiner/moderator, or share fisherman.

• You are a director of a company and received income which is not taxed under PAYE.

• You are a trustee or executor and receive annual income from a trust or settlement.

• You made a chargeable gain in the year of more than £12,000 or sold assets more than £48,000.

• You have received rental income from property.

• You have received dividends, savings and investment income of more than £10,000.

• You have received untaxed income of more than £2,500 or which cannot be collected through PAYE.

• You have received foreign income such as rental income, dividends or interest.

• You or your partner received child benefit and have taxable income exceeding £50,000.

• If you have annual income of more than £100,000 a year.

• You claimed tax relief on work related expenses of more than £2,500.

• HMRC have opened an SA record for you or have issued a return for you to complete.

• There may be any other reasons why HMRC may want you to complete a tax return.

Registering for Self-Assessment

If you become chargeable to income tax for the first time you have a duty to notify HMRC within 6 months of the end of the tax year ie by 5 October. You will need to submit a form SA1 to register for Self-Assessment so HMRC can issue you with a tax return.

Registering/de-registering for self-employment

If you are a self-employed sole trader you must file a form CWF1 to register for self-employment and National Insurance contributions. You should register no later than 6 months after you commenced to trade if not HMRC may issue a £100 penalty.  If you have stopped self-employment you must notify HMRC that you have ceased to trade and submit an online form stopping self-employment.  If you ceased to trade part way through the tax year it is important that HMRC are notified in order than any national insurance contributions are calculated correctly.  It also important to ensure you are registered/deregistered before the return is submitted otherwise class 2 national insurance contributions may be calculated incorrectly by HMRC. If you have submitted an amended return and later deregister the NI Contributions Office may request that you make payment of Class 2 NIC separately as the NIC record may have been closed.  If you have not deregistered a full year of national insurance contributions may be calculated.

Submission Deadlines

The submission deadlines depend on whether you file a paper return, an online return and whether you would prefer to calculate the tax yourself or HMRC to calculate the tax. Usually the paper return must be filed by 31 October after the end of the tax year and then 31 January after the end of the tax year when online filing, unless an extension has been granted.

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.