The requirement for filing a self-assessment tax return
09 July 2014 •
Why the reminder?
Many UK tax payers are unaware that they are required to file a tax return. There are considerable penalties for failing to file and the late filing of a tax return.
The process
Registering for Self-Assessment can either be completed online or by post using a Form SA1. Once this form is filed, HMRC will issue the taxpayer with a unique tax reference known as a UTR. This 10 digit number is required to file a tax return. If the taxpayer has completed tax returns in the past the previous UTR must be used. The UTR can be found on most correspondence from HMRC and if lost you will need to phone them. HMRC will not divulge the UTR over the phone and the letter can take up to 3 weeks.
The requirement for filing a self-assessment tax return
The main reason for filing a tax return is to account for income which is not taxed at source such as a self-employment, joining a partnership or accounting for rental income from a buy-to-let property. However there are a number of other circumstances where a tax return needs to be filed which include:
- becoming a director of a UK company;
- where annual income exceeds £100,000;
- receiving foreign taxable income over £300;
- receiving income from a trust or settlement;
- where untaxed income cannot be collected through a PAYE tax code;
- if income is over £50,000 and child benefit payments are received and
- having a capital gains tax liability.
The registration process can take up to 4 weeks and the filing deadline for the 2013/14 tax return is 31st October 2014 for paper returns and 31st January 2015 for those submitted online.
The above highlights some of the less known reasons for filing a UK tax return. Given the penalties for failing to file a tax return it is important to check whether one needs to be filed. If you have any queries about any of the tax issues raised please do not hesitate to contact our Tax Team on 020 7731 6163