This HMRC Self Assessment tax return guide provides individuals with a comprehensive overview of the necessary steps and information required to complete their tax return accurately and efficiently.
The purpose of this post is to help taxpayers learn about their duties and responsibilities associated with preparing their self-assessment tax return. It covers a number of subjects, including sources of income, permitted deductions, and important dates, to make sure people are aware of their rights and can file their taxes on time.
Additionally, the guide provides helpful tips and advice to minimize errors and maximize tax savings, making the entire process less daunting for taxpayers.
What is a HMRC self-assessment tax return?
One of the most frequently asked questions people have at certain times of the year is “What is a HMRC self-assessment tax return?” which is hardly surprising because tax is complicated.
A self-assessment tax return is a way of telling HMRC how much tax you are required to pay based on your income and any taxable gains you have during the tax year, which runs from April 6th until April 5th the following year.
For example, if you are a self-employed photographer and earn income through freelancing or running a small business, you would need to complete a self-assessment tax return to declare your earnings and calculate the amount of tax you owe.
Who needs to file a HMRC self-assessment tax return?
The following is a list of people and/or situations where you may need to file a HMRC self-assessment tax return:
You earned more than £10,000 from savings interest. For example, if you have a large amount of money in a bank account and each year that money earns interest of £10,000+, then you need to file a self-assessment tax return.
You have a property that you rent out, and the rental income is over £1000 during the tax year.
If you love the thrill of trading stocks on the stock market and you make more than £3000 in profits, you have to file a HMRC self-assessment tax return. This also applies to other profits from investments, such as property.
You are earning foreign income, for example, wages if you work abroad or rental income from overseas property.
You received more than £10,000 in dividends, which is a sum of money you might get if you own shares in a limited company.
If you don’t think you apply to this list above but still think you may need to file a HMRC self-assessment tax return, you might need to speak to an accountant for help.
It is also worth pointing out that there may be other scenarios where someone may have to prepare and file a HMRC self-assessment tax return, for example, if they paid too much income tax. Please see the details below:
Sometimes you may be required to file a tax return if you made donations to charity.
Your work expenses exceeded £1000.00.
You made investments in SEIS- or EIS-eligible startups or VCT funds.
Sometimes people have untaxed income that cannot be paid through PAYE, so they will need to prepare a HMRC self-assessment tax return.
What happens if I don’t file a HMRC self-assessment tax return?
If you have multiple jobs, a family, and other commitments, life can be very hectic, and as a result, you let things slip. If this describes your situation, you are probably wondering: What happens if I don’t file a HMRC self-assessment tax return?
Below is a breakdown of what to do if you don’t file a self-assessment tax return on time, as well as potential penalties and charges:
Fines for filing a late self-assessment tax return
A day late: £100 fine
If you realise you haven’t filed your tax return and it is only a day late, you may automatically be charged a £100.00 fine.
Three months late: maximum £1000 fine
After three months, if you still haven’t filed your self-assessment tax return, the fines start to increase significantly. After three months, you will be charged £10 per day, which is capped at 90 days plus the £100 fine mentioned above, to a maximum of £1000.
Six months late
Filling a tax return more than six months late will incur all the previous fines I discussed above, plus either a £300 fine or 5% of the tax due (whichever is greater).
Twelve months late
If your tax return is still not filed after twelve months, there is an additional £300 fine plus 5% of the tax due. In serious cases, some people have been fined 100% of the total tax due.
Charges for not paying your tax bill on time
Should you have to pay tax after completing your self-assessment tax return, you must pay the tax by 31st of January the following year. If you don’t pay the tax on time,as well as being charged the previously mentioned fees, you will also be charged 7.75% interest from the date the tax payment was due.
Additionally, you may also be charged the following penalties for not paying the outstanding tax on time:
30 days plus You will receive a charge equal to 5% of the tax outstanding.
6 months plus a further 5% of the tax outstanding
12 months + an additional 5% charge
What should I do if I haven’t completed my self-assessment tax return?
If you realise that you haven’t completed your self-assessment tax return, contact HMRC immediately and explain the situation. If your reason for not filing is reasonable, they may reduce some of the fees or charges that get applied.
Complete the tax return as soon as possible, even if you are not in a position to pay any tax that might be due, since you may be able to set up a payment plan to pay it off gradually.
If this all feels a little overwhelming, it may help to get advice by speaking to an accountant about your situation.
Frequently asked questions about self-assessment tax returns
What is the minimum amount of income you need to earn to file a self-assessment tax return?
The minimal income required to submit a self-assessment tax return varies based on your personal circumstances. In general, you must file a self-assessment tax return if you are self-employed or a sole trader and your yearly income is £1,000 or more.
How much do I earn before paying tax on my self-assessment tax return?
The point at which you will start paying tax can vary; however, typically, you do not pay tax on the first £12,570.00 you earn.
How much can I earn before registering as self-employed?
Once you earn more than £1000 in a tax year, you must then register as self-employed.
What is the deadline for completing a self-assessment tax return?
The deadline for completing and submitting a self-assessment tax return is 11:59 p.m. on January 31st, the tax year that ended on April 5th, the previous year. For example, the tax year, which runs from April 6, 2023, until April 5th, 2024, would need to be submitted to HMRC by 11:59pm on 31st January 2025.
Disclaimer
We do not provide accounting, tax, business, or legal advice, and this article has been created for informational purposes only. You should consult your own professional tax advisors for advice and support.
ugoscootersblog.com 
This HMRC Self Assessment tax return guide provides individuals with a comprehensive overview of the necessary steps and information required to complete their tax return accurately and efficiently.
The purpose of this post is to help taxpayers learn about their duties and responsibilities associated with preparing their self-assessment tax return. It covers a number of subjects, including sources of income, permitted deductions, and important dates, to make sure people are aware of their rights and can file their taxes on time.
Additionally, the guide provides helpful tips and advice to minimize errors and maximize tax savings, making the entire process less daunting for taxpayers.
What is a HMRC self-assessment tax return?
One of the most frequently asked questions people have at certain times of the year is “What is a HMRC self-assessment tax return?” which is hardly surprising because tax is complicated.
A self-assessment tax return is a way of telling HMRC how much tax you are required to pay based on your income and any taxable gains you have during the tax year, which runs from April 6th until April 5th the following year.
For example, if you are a self-employed photographer and earn income through freelancing or running a small business, you would need to complete a self-assessment tax return to declare your earnings and calculate the amount of tax you owe.
Who needs to file a HMRC self-assessment tax return?
The following is a list of people and/or situations where you may need to file a HMRC self-assessment tax return:
If you don’t think you apply to this list above but still think you may need to file a HMRC self-assessment tax return, you might need to speak to an accountant for help.
It is also worth pointing out that there may be other scenarios where someone may have to prepare and file a HMRC self-assessment tax return, for example, if they paid too much income tax. Please see the details below:
What happens if I don’t file a HMRC self-assessment tax return?
If you have multiple jobs, a family, and other commitments, life can be very hectic, and as a result, you let things slip. If this describes your situation, you are probably wondering: What happens if I don’t file a HMRC self-assessment tax return?
Below is a breakdown of what to do if you don’t file a self-assessment tax return on time, as well as potential penalties and charges:
Fines for filing a late self-assessment tax return
A day late: £100 fine
If you realise you haven’t filed your tax return and it is only a day late, you may automatically be charged a £100.00 fine.
Three months late: maximum £1000 fine
After three months, if you still haven’t filed your self-assessment tax return, the fines start to increase significantly. After three months, you will be charged £10 per day, which is capped at 90 days plus the £100 fine mentioned above, to a maximum of £1000.
Six months late
Filling a tax return more than six months late will incur all the previous fines I discussed above, plus either a £300 fine or 5% of the tax due (whichever is greater).
Twelve months late
If your tax return is still not filed after twelve months, there is an additional £300 fine plus 5% of the tax due. In serious cases, some people have been fined 100% of the total tax due.
Charges for not paying your tax bill on time
Should you have to pay tax after completing your self-assessment tax return, you must pay the tax by 31st of January the following year. If you don’t pay the tax on time,as well as being charged the previously mentioned fees, you will also be charged 7.75% interest from the date the tax payment was due.
Additionally, you may also be charged the following penalties for not paying the outstanding tax on time:
What should I do if I haven’t completed my self-assessment tax return?
If this all feels a little overwhelming, it may help to get advice by speaking to an accountant about your situation.
Frequently asked questions about self-assessment tax returns
What is the minimum amount of income you need to earn to file a self-assessment tax return?
The minimal income required to submit a self-assessment tax return varies based on your personal circumstances. In general, you must file a self-assessment tax return if you are self-employed or a sole trader and your yearly income is £1,000 or more.
However, this may also depend on other factors, so it is always a good idea to speak to an accountant for advice.
How much do I earn before paying tax on my self-assessment tax return?
The point at which you will start paying tax can vary; however, typically, you do not pay tax on the first £12,570.00 you earn.
How much can I earn before registering as self-employed?
Once you earn more than £1000 in a tax year, you must then register as self-employed.
What is the deadline for completing a self-assessment tax return?
The deadline for completing and submitting a self-assessment tax return is 11:59 p.m. on January 31st, the tax year that ended on April 5th, the previous year. For example, the tax year, which runs from April 6, 2023, until April 5th, 2024, would need to be submitted to HMRC by 11:59pm on 31st January 2025.
Disclaimer
We do not provide accounting, tax, business, or legal advice, and this article has been created for informational purposes only. You should consult your own professional tax advisors for advice and support.
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