Who Must File a Self-Assessment Tax Return
As an Accountant in the UK, I frequently receive questions about self-assessment tax returns. Many individuals are uncertain about whether they need to submit one, the relevant deadlines, and the process of registering for a Unique TaxpayerReference (UTR) number. This blog offers a clear and informative guide on self-assessment tax returns in the UK to help ensure compliance with HMRC regulations.
Who Must File a Self-AssessmentTax Return?
You are required to file a self-assessment tax return if you:
- Are self-employed as a sole trader and have earned more than £1,000 in a tax year.
- Are a partner in a business partnership.
- Have untaxed income, including rental income, dividends, or foreign income.
- Receive Child Benefit and your income exceeds £60,000 (triggering the High-Income Child Benefit Charge).
- Have capital gains tax liabilities from selling assets.
- Have savings or investment income exceeding £10,000.
- Receive a state pension that exceeds your personal allowance and is your sole source of income.
- Earn income from abroad that is subject to UK taxation.
If you are unsure about whether you need to file a self-assessment return, you can use HMRC’s online tool for verification.
Deadline for Notifying HMRC and Registering for a UTR Number
If you are filing a self-assessment tax return for the first time, you must inform HMRC by 5 October following the tax year in which you earned the income. Registration can be completed through the HMRC website.
Once registered, HMRC will provide you with a Unique Taxpayer Reference(UTR) number, which is necessary for filing your self-assessment tax return. Self-employed individuals must also register for Class 2 National Insurance contributions.
You can use the below link for registering Unique Taxpayer Reference (UTR)
Register for SelfAssessment if you're not self-employed
Register for Self Assessment if you’re self-employed
Self-Assessment Filing Deadlines
The UK tax year runs from 6 April to 5 April of the following year. Key deadlines for filing your self-assessment tax return include:
- Paper Tax Return Deadline: 31 October following the tax year’s end.
- Online Tax Return Deadline: 31 January following the tax year’s end.
- Payment Deadline: 31 January following the tax year’s end (includes balancing payments and first payment on account, if applicable).
- Second Payment on Account Deadline: 31 July (if required to make payments on account).
Penalties for Late Filing
Missing the filing deadline can result in penalties:
- 1 day late – £100 penalty (even if no tax is owed).
- Up to 3 months late – £10 per day penalty (capped at £900), plus the initial £100 fine.
- 6 months late – Additional penalty of 5% of the tax owed or £300, whichever is greater.
- 12 months late – Further penalties, potentially up to 100% of the tax due in severe cases.
Conclusion
Understanding your self-assessment tax responsibilities is essential to avoid penalties and remain compliant with HMRC regulations. If you believe you need to file a self-assessment tax return, ensure you register promptly and adhere to the deadlines. Seeking professional guidance from an Accountant can help to achieve accuracy and efficiency in tax filing.
For expert assistance with your self-assessment tax return, feel free to contact us today!
