Filing a Self-Assessment Tax Return can be a long winded process. It can also be a daunting procedure for many people. If you make a mistake or submit the form late, HMRC will issue a penalty of £100 against you.
UK taxpayers have an obligation to disclose taxable income to HMRC on an annual basis. The tax year runs from 6 April to 5 April.
In general, taxes are paid through the PAYE system set up by your employer. If you do not receive an income other than your monthly salary, you do not have to file a self-assessment tax return.
However, in certain situations, taxpayers are obligated to submit a Self-Assessment tax return (form SA100). The application can be performed online by 31st January, or by paper before the 31st October.
If you fail to submit the SA100 before these dates, or if you are late in paying your tax bill, you will be fined £100.
The purpose of submitting an SA100 is to declare all your income and capital gains that are subject to tax. You may also be eligible for tax allowances and reliefs that will either be discounted or paid back as a tax rebate.
When Should You File a Self-Assessment?
Self-Assessment tax returns must be filed by the cut-off date after each tax year has ended. For example, an SA100 for the tax year 2018/19 must be submitted to HMRC by paper before 31 October 2019 or 31 January 2020.
If you fall under any of the stipulations below, you should file an SA100:
- You are self-employed
- You are a partner in a business
- Company director (unless you do not receive pay)
- Rental income that is not taxed before being paid to you
- Religious Minister
- Trustee or Executor of a deceased’s estate
- You earn an income from savings and investments amounting to £10,000 or more before tax
- Your annual income is £100,000 or more before tax
There may also be other tax complications that qualify you to file a Self-Assessment. They are:
- Self-Employed but earning less than tax-free personal allowance. You can find the latest income thresholds here
- You are the beneficiary of a deceased estate amounting to more than £500,000
- Landlords with property in the UK but living overseas
- In receipt of child benefit but you or your partner earn an income over £50,000
- Tax obligations that cannot be collected by the PAYE scheme
- Expenses claims for £2,500 or more
- Capital gains tax from assets which exceed HMRC thresholds. You can find the latest CGT thresholds here
In some of the situations mentioned above, employers and pensioners with an annual income of less than £2,500 a year may not be obligated to pay tax, but may still have to file a Self-Assessment tax return.
How To File A SA100 Quickly
Some of the regulations and situations where tax is payable can be overly complicated. This inevitably takes up a lot of your time and can be a cause for concern.
With HMRC clamping down on tax evaders, it is easy for people to make a mistake when completing a Self-Assessment tax return. You will also be awarded a penalty if you miss the submission deadline.
The quickest and easiest way to submit a self-assessment tax return is to let us do it for you. To avoid penalties for late payment or incomplete forms, contact us today.