Personal Tax

Overview

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.

Eligibility Criteria

Following can send a Tax return through self assessment if in last tax year ( 6th April to 5th April) you are

YOU DON’T NEED TO SEND TAX RETURN IF

But you may need to send one if you have any other untaxed income, such as:

• money from renting out a property
• tips and commission
• income from savings, investments and dividends
• foreign income

You can still choose to send tax returns if

➢ If your income (or your partner’s, if you have one) was over £50,000, you may need to send a return and pay the High Income Child Benefit Charge

• claim some Income Tax reliefs
• prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance

Registering and sending a return

You need to register if you did not send a tax return last year. There are different ways to register if

registering a partner or partnership

• self–employed or a sole trader
• not self–employed

Sending your return

You can send your return through

You must Commercial Software/ Paper Form to send returns IF YOU ARE:

HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the deadline.

The last tax year started on 6 April 2020 and ended on 5 April 2021.

Register for Self Assessment if you’re self–employed or a sole trader, not self–employed, or registering a partner or partnership

your bill (known as ‘payments on account’).

You’ll usually pay a penalty if you’re late. You can appeal against a penalty if you have a reasonable excuse.

• for a partnership
• for a trust and estate
• if you get income from a trust
• if you lived abroad as a non-resident
• if you’re a Lloyd’s underwriter
• if you’re a religious minister
• to report profits made on selling or disposing of more than one asset (‘chargeable gains’)

PENALTIES

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

• £100 if your tax return is up to 3 months late ➢ More Penalty if later than Three Months ➢ interest on late payments.
• Estimate your penalty for Self Assessment tax returns more than 3 months late, and late payments.
• You can appeal against a penalty if you have a reasonable excuse.
• All partners can be charged a penalty if a partnership tax return is late.

How to get help

If you need help with Self Assessment, you can: