The new tax year

A new tax year does not mean much to some people, yet to others, it reminds them of an impending deadline… the deadline of the tax return! Whilst a lot of people think of a tax return as something to be completed by self-employed individuals, which may be true, there are other reasons why you may be required to complete a tax return that you might not know about.

Do I need to complete a tax return?

You are likely to have to file a tax return if:

• You’re self-employed and your income was more than £1,000

• You earned more than £50,000 and claim child benefit

• You have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK

• You need to pay Capital Gains Tax on profits from selling things like shares or a second home

• You earned £2,500 or more in untaxed income, e.g. renting out a property

• You earned £100,000 or more

• You had savings or investment income of more than £10,000 before tax

• You’re a company director

• If you earned over £50,270 in the 2023/24 tax year and made pension contributions, you might have to complete an assessment to claim back the extra tax relief you’re owed

• You received a P800 from HMRC saying you didn’t pay enough tax last year

You usually don’t need to fill in a Self-Assessment tax return if you’re an employee who has paid tax through the Pay As You Earn (PAYE) system. This is unless you earned over £100,000.

You can visit the government’s website to find out if you are required to submit a tax return here: https://www.gov.uk/check-if-you-need-a-tax-return 

How do I complete a tax return?

If you’ve never completed a tax return before you will be required to register for Self-Assessment. You can find out how to do this on the government’s website. Once you’ve got yourself set up you submit your tax return online then you are required to pay any tax owed by the deadline. It’s important to note that this doesn’t fall in line with calendar years, instead it’s only based on tax years. The last tax year started on 6 April 2022 and ended on 5 April 2023.

There are other deadlines too which you will need to be aware of as failure to meet any of the deadlines may incur a penalty. Find out any key deadlines here: Self Assessment tax returns: Deadlines GOV.UK (www.gov.uk)

What information do I need to submit a tax return?

It’s important to make sure you have everything you need before you begin, such as:

• Your ten-digit Unique Taxpayer Reference (UTR)

• Your National Insurance number

• Details of your untaxed income from the tax year, including income from self-employment, dividends and interest on shares

• Records of any expenses relating to self-employment

• Any contributions to charity or pensions that might be eligible for tax relief

• P60 or other records showing how much income you received that you’ve already paid tax on

There are some helpful guides provided by the government too: https://www.gov.uk/self-assessment-forms-and-helpsheets 

Helpful resources

If you find yourself in a position where you are required to complete a tax return, whilst initially it may seem like a daunting task, there are lots of helpful resources to help you complete it successfully. And of course, if you still aren’t sure, you can always speak to an accountant for advice, although this may cost you.

We’ve also compiled a list of helpful resources to help you through the process… good luck!

Self Assessment tax return information: Money Helper

Self Assessment tax returns: Overview – GOV.UK (www.gov.uk)

How to fill in a self-assessment tax return – Which?

A beginner’s guide to self assessment | money.co.uk

Written by,

Jo Moscrop

Chief Business Development Officer