BIFA has received the following guidance from HMRC regarding Self-Assessment tax returns, providing top tips and FAQs. Please see below the guide from HMRC.
What is Self Assessment and why do I need to do it?
Self Assessment is the process used to declare and pay tax owed to untaxed income.
If you are employed, then your employer will deduct any tax owed (Income Tax and National Insurance) before they pay you. This is known as PAYE (pay as you earn) and is also known as being taxed at source. But if you have any additional income, which has not been taxed, you may need to do a tax return.
If you don’t have an employer deducting your tax or National Insurance, you may be required to do a Self Assessment tax return.
Who must send a tax return?
GOV.UK sets out who must send a Self Assessment tax return each year.
You must send a tax return if you:
- are self employed
- had a total taxable income of more than £100,000
- need to pay the High Income Child Benefit Charge
If you are unsure, you can use the free online checking tool on GOV.UK to check whether it applies to you.
How can I register for Self Assessment?
If you need to complete Self Assessment, you must register via GOV.UK.
If you are self-employed, you will need to register for Self Assessment and Class 2 National Insurance contributions.
If you’ve not used the online service before you’ll need two forms of evidence to prove your identity. This can include your UK passport and UK driving licence. We may also offer you a new identity checking app as an alternative. It lets you use the camera on your phone to confirm a match with your driving licence.
Once you have registered, HMRC will send you your Unique Taxpayer Reference (UTR). Keep this safe because you will need it every year when you complete your Self Assessment.
What information will I need before I start my tax return?
When you are ready to start your tax return you will need your UTR and National Insurance number – you can get these on the HMRC app, as well as details of your income, earnings and other financial records. If you are unsure what records you need to keep in order to complete your Self Assessment, you can check on GOV.UK.
When is the deadline?
The Self Assessment deadline for the 2022 to 2023 tax year is 31 January 2024.
You must file your tax return and pay any tax owed by the deadline. If you miss it, you may incur penalties.
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The full guide can be found HERE.
