In 30 seconds….What is a Self-Assessment Tax Return?

A Self-Assessment Tax Return, also known as a Personal Tax Return, or SA100, is used primarily to report untaxed income to HM Revenue & Customs (HMRC) before making any payments for the additional taxes owed.

Put simply, you, the individual, are required to declare to HMRC all income received, even if tax has already been deducted, to calculate your total income and tax due. There are several reasons you may need to complete a self-assessment tax return, more of which we will go into further detail. The most common is when working for yourself.

Self-Assessment: The Basics

Who needs to register for Self-Assessment?

There could be a number of reasons as to why you need to complete a self-assessment tax return, however the most likely are as follows, but not limited to:

• Property income is over £2,500 per annum – likely for those renting a property or owners of a furnished holiday let. Although, we advise all landlords to submit tax returns each year to protect any losses that may arise.
• You are required to pay Capital Gains Tax on the profits on the sale of an asset or investment.
• You or your spouse/partner were in receipt of child benefit and one of you earned more than £50,000 for the tax year 23/24 or prior, resulting in a High-Income Child Benefit Charge. In this case, it is the higher earner that should submit a tax return. From April 2024, resulting from changes announced in the Spring Budget ’24, this figure will increase to £60,000 applicable to income for tax years 24/25 and onwards.
• You are self-employed with an annual income of more than £1,000.
• HMRC have issued you with a P800 stating you have paid an insufficient amount of tax in a previous tax year.
• Income has been generated from investments or savings of £10,000 or more before tax. This includes dividends paid to you by your own Ltd company.
• Where you need to declare over £2,500 in untaxed commission or cash in hand payments.
• Your taxable income was over £100,000.
• Overseas income – you will not need to report this to HMRC if it is less than £2,000 and not brought into the UK.
• You are a trustee or registered pension scheme holder.

If you are uncertain whether you need to complete a self-assessment tax return, we would always advise that you speak to a professional/an accountant for further advice. Alternatively, you could visit the HMRC website for a comprehensive list: Who must send a tax return?

How do I register for self-assessment?

Like many things in life, with someone else doing it on your behalf, it makes things a lot easier. So, if you are using the services of an accountant to complete your self-assessment tax return, this should all be handled for you.

At Integro Accounting we will register you for Self Assessment and submit the return on your behalf. Your dedicated accountant – who is allocated across all our services – will work with you to complete this and advise you on what tax is owed.

If you are not using the services of an accountant and wish to submit your self-assessment tax return yourself, then we recommend following the below steps:

Step 1- Register your details for a Government Gateway account. This is a dedicated account just for you where you can use a variety of online services. To register you’ll need your National Insurance number or postcode along with two forms of ID, most commonly passport and driver’s license.

Step 2 – Once registered you will receive a Unique Taxpayer Reference (UTR). It is a 10-digit number usually sent in the post after you register, but is also available through your online gateway account.

Step 3 – Sign in using your Government Gateway user ID and password and register your interest to file your tax return. With a variety of services available to register for using the government gateway portal, ensure you register for the correct service. This will not automatically be done for you.

Always check you have full access in advance of submitting your tax return, to avoid any delays and penalties.

Regular users should simply be able to login using their existing gateway account details and UTR number.

What are the tax deadlines for the tax year ended 05 April 2024?

A few points to be aware of:

• The tax deadline dates can differ depending on whether you send your submission by paper or online.
• Dates are based on the tax year dates and not a calendar year. The below deadline dates are for tax returns covering income received between 6^th April 2023 and 5^th April 2024.

Registration for Self-Assessment: 5^th October 2024

If this is your first self-assessment tax return, you’ll need to ensure registration is completed by the above date.

Paper Self-Assessment Tax Returns: 31st October 2024 – Midnight cut off time.

This is for paper tax returns only.

Online Self-Assessment Tax Returns: 31st January 2025 – Midnight cut off time.

This is for online submissions only we recommend planning in advance of this date to avoid any technical issues with logins, passwords etc. You will not be exempt if these issues should occur. Individuals working for certain government departments are forced to file by post but will still be given until 31st January to make their submission.

Full payment of tax owed on bill: 31st January 2025: Midnight cut off time.

Additional penalties and charges will be incurred should miss this deadline. Should you be required to make payments on account, the first payment will also be due, with the second being due by 31st July 2025.

What details do you need to complete a return?

Along with your UTR number and national insurance number, it is recommended to have the following information on hand before starting your tax return:

• Full details of all income – no detail is too much, income from working for yourself, rental income, interest from savings and investments and dividends etc.
• Detailed breakdown of any expenses.
• Charitable donations or pension contributions.
• Existing tax you have already paid, records such as P60 when applicable.
• Any chargeable capital gains or capital losses made.

Additional information may be required depending on your circumstances.

For more information Self-Assessment tax returns, visit our quick guide Self-Assessment FAQs.