Do you need to register for self-assessment?

Posted on 25th January 2024 by Streets -  Income Tax


Image to represent Do you need to register for self-assessment?

There are a number of reasons why you might need to complete a self-assessment tax return. This includes if you are self-employed, a company director, have an annual income over £150,000 and / or have income from savings, investment or property.

The £100,000 self-assessment threshold changed for taxpayers taxed through PAYE only. The limit increased from £100,000 to £150,000 with effect from 6 April 2023.

Taxpayers that need to complete a self-assessment return for the first time should inform HMRC as soon as possible. The latest date that HMRC should be notified is by 5 October following the end of the tax year for which a self-assessment return needs to be filed.

HMRC has an online tool www.gov.uk/check-if-you-need-tax-return/ that can help you check if you are required to submit a self-assessment return.

You are required to submit a self-assessment return if any of the following apply:

  • you were self-employed as a ‘sole trader’ and earned more than £1,000 (before deducting items available for tax relief);
  • you were a partner in a business partnership;
  • you received a total taxable income of more than £150,000 in 2023-24 (£100,000 in 2022-23);
  • you were obliged to pay Capital Gains Tax when you sold or ‘disposed of’ an asset that increased in value; or
  • you had to pay the High Income Child Benefit Charge.

You may also need to file a tax return if you have any untaxed income, such as:

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

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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