The world of self-assessment can be ever-changing and for many, it can seem more complicated than it is. We have outlined some of the most frequent questions we have encountered from clients, to help you understand this process much better.
Is there a need for me to complete a self-assessment tax return?
A number of reasons mean that there is a need for completing a self-assessment tax return. The main reasons are as follows:
- You receive money from a property that you rent out
- You are self-employed or a partner in a business partnership
- You receive foreign income
- You are a shareholder in a company and receive dividends
- Your adjusted net income exceeds £100,000 in the tax year
- You disposed of an asset in the past year
This is not an exhaustive list, there are other reasons that mean you need to complete a self-assessment tax return. Click here to get in touch and discuss with a member of our experienced team.
When does my tax return need to be filed?
For digital returns, the deadline is by the 31st January, following the end of the tax year. Alternatively, if you are filing by paper the deadline is the 31st October. As an example, for the tax year which ended on 5th April 2019, the self-assessment tax return would need to be filed either the 31st January 2020 online or 31st October 2019 by paper.
When is my personal tax due and why do I have to make payments on account?
In short, tax is due on the 31st January after the end of the previous year. Sometimes you may also be required to make payments on account. These are calculated based on your previous year’s tax bill and are payable on both the 31st January and 31st July.
You are only required to make payments on account if your tax liability in a tax year exceeds £1,000 after any adjustment for tax deducted at source.
This has been a brief summary of the main questions we are asked. If you have further questions or want to discuss your circumstances please click here to get in touch with us. We are always willing to advise and help with tax matters.