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
Taxpayers that need to complete a Self-Assessment return for the first time are required to notify HMRC. This is a final reminder that the latest date that HMRC should be notified, by new Self-Assessment taxpayers, for the 2022-23 tax year, is 5 October 2023. The deadline for filing the 2022-23 Self-Assessment tax return online and paying any tax due is 31 January 2024.
There are a number of reasons why you might need to complete a Self-Assessment return for the first time. This includes if you are self-employed, have an annual income over £100,000 and / or have income from savings, investment or property.
The £100,000 income threshold for Self-Assessment changed for taxpayers who are only taxed through PAYE. It increased from £100,000 to £150,000 with effect from 6 April 2023. However, the Self-Assessment threshold for 2022-23 returns remains at £100,000.
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.
The following list summarises some of the reasons when taxpayers are usually required to submit a Self-Assessment return:
- The newly self-employed (earning more than £1,000);
- Multiple sources of income;
- Taxpayers that have received any untaxed income, for example earning money for creating online content;
- Income over £100,000;
- earn income from property that they own and rent out;
- are a new partner in a business partnership;
- Taxpayers whose income (or that of their partner’s) was over £50,000 and one of you claimed Child Benefit;
- Receiving interest on savings or investment income of £10,000 or more before tax;
- Taxpayers who made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax; and
- Taxpayers who are self-employed and earn less than £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits.