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Who must submit a Self Assessment Tax Return?

In recent years the UK government has been seeking to take as many people out of the Self Assessment process as possible, favouring the collection of income tax at source through the payroll process. However there are some individuals who always need to prepare a Self Assessment tax return including:

  • Company Directors
  • High Earners (> £100k pa)
  • Anyone with untaxed income (e.g. dividends > £10k pa or private landlords)

Individual taxpayers in the UK let HMRC know how much income they have earned in a given tax year, together with how much tax they owe, through the submission of a Self Assessment Tax Return (“Self Assessment”).


Submitting the return and paying the tax

As the name suggests this is a submission made to HMRC by the taxpayer, telling HMRC what income you have earned or received in a particular tax year, how much tax you have already paid (through PAYE or similar) and what is still to be paid (or in some cases repaid).


The UK tax year runs from the 6 April in one year to the 5 April the next year; and the Self Assessment tax return is due for submission by 31 January following the end of the tax year


Payments on Account

For those whose tax liability does not meet the criteria above, it is slightly more complicated. Like any savvy entrepreneur, HMRC has sought to improve their cash flow and reduce their working capital by getting tax payers to make payments on account.

Payments on account are due on 31 January, in the tax year in question and 31 July shortly after the tax year ends on 5 April. Payments on account are estimated based in the previous year’s tax liability and so by the time you file the actual tax return on 31 January, you will be able to make a final payment of the balance owed, plus the payment on account for the next tax year. Fiddly isn’t it?


Get help and get it right

“Tax doesn’t have to be taxing” as the strapline goes, but it is something you want confidence has been handled correctly and in the most tax efficient way possible.

We can complete your Self Assessment Tax Return, ensuring that you remain compliant with the latest tax legislation and make best use of the range of deductions and credits that might be available.

Make sure you pay the right amount of tax

We also recommend that anyone who is not on the standard tax code has a review of their tax position. All too often we see overly aggressive tax codes being issued, or submission mistakes occurring in payroll that result in overpaid tax. The good news is that through the Self Assessment process we can usually get this back.