Do you need to complete a Self Assessment Tax Return?

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14 December 2018

Services:

VAT & Customs Duty

The deadline for you to complete a self assessment tax return for 2017/18, submit online to HMRC and for payment of any tax owed is 31 January 2019.

The majority of people in the UK are paid under Paye As You Earn and do not have to file a return. However, there is a requirement to complete a return if:

HMRC issues a notice requiring a return
an individual has a tax liability

Common situations where an additional tax liability may arise

you have a source of self-employed income
you receive rental income
you have received dividends of more than £2,000 in 2017/18
you receive interest of more than £1,000 if you are a basic rate taxpayer or more than £500 if you are a higher rate taxpayer
you or your partner receive child benefit and your income is over £50,000
you have made pension payments in excess of the annual allowance (currently £40,000). However, the annual allowance is reduced if your income exceeds £150,000
you have taken benefits from a pension scheme and the value of your pension schemes exceeds the Lifetime Allowance when these benefits were taken
you have received income from a Trust or Estate and further tax is due
you have made a gain on the encashment (partial or full) of a life assurance policy or capital redemption policy
you have made capital gains in excess of the annual allowance (£11,300 for 2017/18 and £11,700 for 2018/19)

As tax is increasingly complex, it is always wise to consider if you have an obligation to report any income or gains to HMRC. Failure to do so will most likely result in fines and penalties. It should be appreciated that ignorance of the law is no defence in these situations.

If you or any of your contacts require any professional help with your self-assessment tax return, other tax advice or just need reassurance that you are meeting your obligations, please contact us on 0113 398 1100 or email leeds@hwca.com