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What is a Self Assessment Tax Return?

JAFA Accountancy

Updated: 5 days ago



Self-assessment tax return is a system used in the UK by HMRC (HM Revenue & Customs) for collecting income tax from individuals as well as businesses whose income isn’t taxed automatically through the PAYE (Pay As You Earn) System. 


Under the PAYE system, your employer automatically deducts income tax and National Insurance from your salary before you get paid. However, self-employed individuals, partners in business partnerships, landlords, and those with additional income sources like investments or rental properties, must personally calculate and pay their taxes annually. 


Do You Need to File for Self-Assessment Tax Return?

Before we discuss whether you need to file a self-assessment tax return, you should remember that the tax year in the UK runs from April 6th to April 5th. So, the 2023/24 tax year starts on 6th April 2023 and ends on 5th April 2024.  


You should file a self-assessment tax return if any of this applied to you for the last tax year:


  • You were self-employed and earned over £1,000

  • You were a partner in a business partnership

  • Your total taxable income exceeded £150,000 

  • You needed to pay Capital Gains Tax on profits from selling assets like property or investments

  • You or your partner earned over £50,000 and claimed Child Benefit, triggering the High Income Child Benefit Charge


In addition to this, you can also qualify for a self-assessment tax return if you had untaxed income as follows:


  • Income earned from renting out property

  • Savings and Investments (interest or dividends exceeding £10,000 before tax)

  • Foreign Income (earnings from abroad)


If you are still unsure whether you need to send the self-assessment tax return, you can always use this online tool provided by HMRC. 


Self-Assessment Tax Return Example


To help you better understand the concepts, let’s take the example of Tom who runs a small cake business. During the tax year (6 April 2023 to 5 April 2024):


Total Income (cake sales): £20,000

Business Expenses (ingredients, rent, utilities): £5,000


Since Tom is a sole trader (self-employed) and earned more than £1,000 in gross income (before expenses), he must register for Self Assessment. 


So, once he figures out he is eligible for a self-assessment tax return by HMRC, he would have to do this next:


  1. Register for Self Assessment with HMRC to get a Unique Taxpayer Reference (UTR).

  2. Log into his HMRC account, fill in the self assessment tax return form online, and submit it by 31 January 2025 (as he’s submitting it online).

  3. Pay the Tax. 


Keep in mind that you can also do the self assessment paper tax return, for which you can download the SA100 tax return form by visiting the link here


When Is Self Assessment Deadline?


In the UK, the Self Assessment tax return deadlines are:


Paper Returns: 31 October following the end of the tax year. 


Online Returns: 31 January following the end of the tax year. 


Tax Payment (for taxes you owe): 31 January following the end of the tax year. 


For the 2023-2024 tax year (ending 5 April 2024), the deadlines are:


Paper Return: 31 October 2024.


Online Return and Payment: 31 January 2025.


How JAFA Can Help


Whether you’re based in Birmingham, UK, or earning revenue from the UK anywhere in the world, our professional and friendly team of accountants is here to assist with self-assessment tax returns, general taxes, accountancy, or payroll services.


We leverage AI technology to automate your business’s bookkeeping, giving you real-time financial insights. This ensures effective tax planning, forecasting, and advisory services to support your business growth.


Book your FREE discovery call today by visiting here.  

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