In this article we look at whether you need to register and file for self assessment tax return.
In a recent data published by HMRC around 47 million people have taxable income in the UK, out of which 31 million pay income tax as rest of the 16 million have income below the personal allowance threshold. Majority of these people pay their income tax through PAYE and are not required to submit a tax return. This is because the employer deducts the taxes from wages payment. Therefore, you will only be required to submit a self assessment tax return, if any of the following applies to you:
This is not an exhaustive list and the complete list of who needs to file a Self Assessment is available on the Gov.uk website – the website also has an online tool that will tell you if you need to file a return.
Every year HMRC will send a notice to file tax return – to everyone in their Self Assessment system in April / May month . If you receive a tax return, or a notice to file on-line, you ought to finish a return and submit it to HMRC. This maybe the case even if you're an employee and all your income are taxed under PAYE.
Also Read: Self Assessment Tax Returns Service
Requesting HMRC to pull back a tax return
If you get the notice to file the Tax Return and you do not qualify above criteria explained and you do not owe any tax liability, you can call HMRC on 0300 200 3310 and request for the tax return to be withdrawn. If HMRC agrees with your reasoning, then they will tell you in writing that you don’t need to file a return.
The request for pulling back the return has to made within two years from the end of the tax year for which the return is due. In exceptional circumstances, where you have been a low income earner and require the tax returns to be pulled back for a few years, please speak to our experts.
The request for the returns to be pulled back can be made even after late filing penalties have been incurred. If HMRC agrees, you will not need to submit the tax return and any penalties incurred for missing the tax return filing deadline can be waived off. HMRC will not pull back a return if you have been self-employed at any time during the tax year – regardless of whether it was only for a short period and there is no tax owed.
Key dates and deadlines
|1||Registration for Self-Assessment||By 5 October 2020|
|2||Submission of paper tax return||By 31 October 2020|
|3||Submission of online tax return||By 31 January 2021|
|4||Tax payment||By 31 January 2021|
|1st payment on account 31 January||2021|
|2nd payment on account 31 July||2021|
|Balancing payment 31 January||2022|
|Capital Gains Tax* 31 January||2022|
*From 6 April 2020, If you are selling a UK residential property, the Capital Gains Tax returns needs to be reported to HMRC and the tax paid within 30 days of selling the property.
Late interest payment and penalties
|30 days||5% of tax unpaid at the date|
|Six months||Another 5% of tax unpaid|
|Twelve months||Another 5% of tax unpaid|
For more details, please speak with our advisors.
Also Read: Online HMRC Self Assessment Tax Return Forms