16th November, 2023, Martyn Benstead
Martyn Benstead, partner at Stephenson Smart, explains the importance of being prepared as the Self Assessment tax return date looms.
There’s never an ideal time to start thinking about your Self Assessment tax return, but my advice would be to begin organising your paperwork sooner rather than later.
Those who are self-employed, a partner or director in a business, or anyone who receives income from property may need to complete one.
The deadline may not be until January 31, 2024, but with the run-up to Christmas and the big event itself on our minds, it’s key not to leave it too late.
Essentially, a Self Assessment tax return is an annual return that demonstrates to HMRC someone’s annual income that doesn’t fall into their Pay As You Earn (PAYE) earnings.
HMRC send out ‘notice to file’ notifications.
If you have not received one of these, but fall under certain categories, you are advised to complete a tax return for any earnings that fall into the period from 6 April 2022 to 5 April 2023:
- If you are self-employed and earned more than £1,000.
- If you are a partner in a business.
- If you are a company director and have income on which tax is due that is not taxed under PAYE.
- If you have property income.
- If you want to claim tax relief on employment expenses over £2,500 in a year.
- If you have to pay a tax charge on your child benefit, known as the high -income child benefit charge.
- If you have untaxed savings income. HMRC might be able to collect any tax due on small amounts without you doing a full tax return, but you should always tell them about savings income of more than £1,000 a year.
- If you have capital gains tax to pay, which hasn’t already been paid in-year – this should be paid within 60 days of the sale of the property.
There are many reliefs that can be applied to additional, private income, so it may be worth employing the services of an accountant to help you complete your tax return.
If you would like our support, or any other advice relating to tax, or business please get in touch with your local office.
