With the end of another tax year it is time for people to begin thinking about their next self-assessment tax return. It is also a good time to review activities over the last year to see if there is a need to register for self assessment.
One of the main reasons to register for self-assessment is if you have become self-employed in the previous tax year. Self-employment can be either as a sole-trader (where you work for yourself) or a partnership (where you work with another person).
If you become self-employed you will need to register for self-assessment, if you are the nominated partner in a partnership you will need to register the partnership as well.
Other situations where you will need to register for self-assessment include:
- Having taxable income exceeding £2,500. This includes sources such as rental income and investments.
- Expenses from your work exceed £2,500.
- You have investment or savings income that exceeds £10,600 before tax.
- You sell any items that qualify for capital gains tax.
- If you are director of a company, except for a non-profit organisation where you received no company benefits.
- You have income of £50,000 and you or your partner claims child benefit.
- You have income from abroad that you need to pay tax on.
- You have UK income while living abroad.
- Your income exceeds £100,000.
If you are still unsure if you need to file a self-assessment tax return, you can also check by following the instructions on this link or contact the self-assessment helpline on 0300 200 3310.
If you need to register, you will need to do so before the 31st of October in order to avoid a penalty.
Once registered you will receive a ten digit Unique Taxpayer Reference (UTR) as well as details to log onto the HM Revenue and Customs website to manage your self-assessment account.
If you have previously registered for self-assessment, you should still be able to use your UTR from last time.
If you would like any more advice or information regarding the above or self-assessment in general, please do not hesitate to contact us.