Self Assessment isn’t just for individuals running their own business. There are a number of reasons that an individual might have to register to file their tax return.
The following are just some of the reasons someone would have to file a tax return with HMRC.
WORKING FOR YOURSELF AS A SOLE TRADER
As a sole trader, you are required to calculate and declare your own annual profit or loss. Income tax and national insurance will be payable on your taxable profit.
AS A DIRECTOR OR SHAREHOLDER OF A LIMITED COMPANY
As a director or a shareholder of a limited company you may be entitled to income which is not taxed at source. Therefore you must declare and pay tax on this income.
GETTING INCOME FROM LAND AND PROPERTY IN THE UK
When receive income from land and property which exceeds an annual amount of £2,500 you must calculate your property’s profit or loss and declare to HMRC.
RECEIVING FOREIGN INCOME OF £300 OR MORE PER YEAR
UK residents are usually taxed on their worldwide income. Foreign income should be declared to HMRC.
RECEIVING ANNUAL INCOME FROM A TRUST/SETTLEMENT
Income received from a trust is usually not taxed at source. Therefore it should be declared as extra income.
RECEIVING ANNUAL INCOME OF OVER £100K
When your earnings go over £100k you need to file a self assessment tax return. Even if you’re only source of income is PAYE. This is because the PAYE system doesn’t cope very well with higher levels of income.
IF YOU MADE ANY CAPITAL GAINS DURING THE YEAR
Capital gains on the sale of assets should also be declared to HMRC. Even if you made a loss on assets you should declare them as they could be used to offset gains made in the future.
CLAIMING CHILD TAX CREDITS AND EARNING OVER £50K
If you or your partner earn over £50k and have been claiming tax credits you must repay them. You can do this via self assessment.
Requirement to register for self assessment is not just limited to those who have started their own business.
However, if you’re unsure that you need to register, contact us today to see how we can help.
Alternatively, if you’re already registered and need some help filing your return, contact us for a quote.