Everything You Need to Know
If you are self-employed, a company director or receive income from property, savings or investments, you may need to complete a self assessment tax return. This is an annual requirement that helps HM Revenue and Customs (HMRC) to calculate your tax liability.
Who needs to complete a self assessment tax return?
You will need to complete a self assessment tax return if any of the following apply to you:
- You are self-employed or a sole trader
- You are a partner in a business
- You are a company director
- You receive income from property or land you own
- You receive income from savings, investments or dividends
- Your income is over £100,000 per year
- You have any other untaxed income, such as tips or commission
When is the deadline for submitting?
The deadline for submitting your self assessment tax return online is 31st January following the end of the tax year. For example, if you are completing your tax return for the 2021/22 tax year, the deadline will be 31st January 2023.
If you miss the deadline, you may be fined and charged interest on any tax owed.
What do you need to include in your return?
Your self assessment tax return will ask you to provide details of your income and any expenses you have incurred during the tax year. This will help HMRC to calculate your tax liability.
You will need to provide details of:
- Your employment income, including any benefits you receive
- Any self-employed income you have received
- Any income from property, savings or investments
- Any other untaxed income
- Any expenses you have incurred that are related to your income, such as office rental or travel costs
You may also need to provide additional information depending on your circumstances, such as details of any foreign income or tax relief you are entitled to.
How can you complete your self assessment return?
You can complete your self assessment tax return online using HMRC’s website. You will need to create an online account and then follow the instructions to complete your return.
Alternatively, you can use R Francis Accountancy Services as your tax agent or accountants to help you with your tax return. We have many years experience in providing these services and many very happy clients.
Completing a self assessment tax return can be a daunting task, but it is an important requirement if you need to pay tax on your income. By understanding who needs to complete a tax return, when the deadline is and what you need to include, you can ensure that you meet your tax obligations and avoid any fines or penalties.
If you need any help with your self assessment tax return or professional advice from a tax agent or accountant contact us.
Here are some links that may be helpful for UK sole traders:
- Gov.uk – Starting a business: https://www.gov.uk/starting-up-a-business
- HM Revenue & Customs – Register for Self Assessment: https://www.gov.uk/register-for-self-assessment
- HM Revenue & Customs – Working for yourself: https://www.gov.uk/topic/business-tax/self-employed