A few days ago, I had cause to look again at the rules about who needs to register to complete self-assessment, it isn’t as clear cut as you think.
The most obvious reason to register is if you become self-employed. You must register within 3 months of starting to trade.
If you are a company director or a minister of religion you must complete self-assessment returns, unless you are a director of a non-profit making company or charity and do not receive any benefits from it.
If you receive savings, investment or property income and your income is more than the following levels, you must complete a self-assessment return:
- £10,000 from savings and investments;
- £2,500 income from UNTAXED savings and investments;
- £10,000 income from property (before deducting expenses);
- £2,500 income from property (after deducting expenses);
- income annually from a trust or settlement, on which tax is still due;
- income from the estate of a deceased person, on which tax is still due;
You may need to complete a return if you are over 65 and your income is over £24,000, unless your tax affairs are very straight-forward.
If you have any income from overseas that is taxable in the UK you must complete a tax return.
If your annual income is over £100,000 you will need to complete a return.
If you owe tax at the end of a tax year and you either can’t or don’t want it deducted from your PAYE income, you will need to complete a tax return.
If you have capital gains tax to pay, on the sale or disposal of assets you own, such as shares or holiday homes, then a tax return will be needed.
You may need to complete a return if you have lived or worked abroad or aren’t domiciled in the UK. This is a complex issue and each case would need to be looked at individually.
IMPORTANT NOTE: The amounts and rules quoted are for tax year ended 5th April 2012 and cannot be relied on after that date. For more information see http://www.hmrc.gov.uk/sa/need-tax-return.htm.
Do contact me if I can help you will your self-assessment return.
