The UK tax year ended last month and HMRC may have contacted you to request that you complete a self-assessment tax return.

Anderson Accounts can help you complete your return. Don’t hesitate to contact us to find out more or to get a quote.

Even if you haven’t been contacted by HMRC, you may still need to complete an annual tax return. Many individuals may not realise they need to submit one. Here are a few groups of people who may need to do so.

The self-employed

Anyone who is self-employed will not have their income taxed at source, and their money will generally not be separate from that of their business. You will probably be in this state if you have started up a business but have not registered with Companies House, because if you are registered with them you will need to pay yourself either wages or dividends.

If you are self-employed, your assets and those of your business are treated as one and the same and you will be taxed on any profits you make through your trading. If you make a loss, you should be able to carry this forward to reduce how much you will pay on next year’s profits.

Landlords

If you are renting out a property, you will need to pay tax on any profits that you make. Many – but not all – expenses are deductible. The rules are changing around mortgage payments in the next few years and so it is important to be up to date on what you can and can’t claim as a deductible expense.

If you have lodgers, you will need to pay tax on any income over a set threshold which is currently set at £7,500.

Individuals who have made capital gains

This might apply if you made a profit selling an asset such as shares or a property which is not your primary residence. You will pay tax on the profits you have made but there are often allowances. Capital gains tax can be a complicated area and it is best to get advice. However since April 2020 the rules around capital gains on property sales have changed such that you need to report any capital gain within 30 days.

Shareholders

If you receive dividends from shareholdings then these are taxable. This can occur if you are a director of a company and part of your remuneration is in dividends, or if you have invested in a company through the stock market, privately or any other means.

Individuals who receive tips

If you receive tips totalling more than £2,500 over a year from your employment, for example as waiting staff or taxi drivers, you will need to declare this to HMRC. This will be taxable income so it is important to record how much you are receiving as you receive it.

You earn over £50,000 and claim child benefit

Child benefit will need to be repaid in part if you earn over £50,000 per year. Read our overview of child benefit for more information.

You earn over £100,000 through any means

When you earn over £100,000 your personal allowance is reduced by £1 for every £2 you make over this amount. You will need to fill in a self-assessment tax return for HMRC to correctly calculate your tax bill for the year.

You fall into another category which requires a return

Several other groups of people require tax returns. Some examples are anyone who lived abroad but had UK income, . You can see HMRC’s full guidance and check if you need to submit a return here. The rule of thumb is that if you receive income which isn’t taxed by an employer then you will likely need to submit a return.

If you are unsure at all, please don’t hesitate to contact Anderson Accountsand we can answer any questions you may have about whether you need to complete a return.