Do I need to submit a tax return?

If you are self-employed and earning more than £1,000, a partner in a partnership business, a company director or if you have other income from savings, investments or property, you will need to file a Self Assessment Tax Return.

The tax return is not a tax itself, it is a way of calculating and paying tax. If you fit into one of the categories above you are wholly responsible for completing a tax return each year and for paying any tax due.

To be clear, HMRC will not prompt you to complete a tax return. If HMRC do however send you a SA to complete, this must be completed and returned by the due date and not be ignored unless you have agreed with HMRC directly to cancel it.

What is included in SAs and what paperwork do I need?

SAs include all your income and any capital gains, such as any gains made from investments or from income earned as a landlord, as well as self employment income.

Any tax allowances and tax reliefs you may be eligible for can also be included on your tax return to then calculate your overall tax liability.

HMRC may request evidence and records and it is a legal requirement to keep relevant income and capital gains tax records for at least 22 months after the end of each tax year.

If for any reason you submit your tax return late, you will need to keep your records for at least 15 months from the date you send your tax return.

Deadlines for completion

The current tax year for personal income runs from 6th April 2020 to 5th April 2021, and is the same date format each tax year. This is often abbreviated to ‘2021/2021’.

If you are needing to complete a tax return for the first time, you are required to inform HMRC by 5th October. For example, for the current 2021/2022 tax year, you should inform HMRC by 5th October 2021.

You can complete your tax return in paper form or online.

If in paper form, the deadline for submission is 31st October. If there is a delay of submission, there will be a penalty charged imposed by HMRC, even if you have no tax to pay for the tax year of submission.

If you submit your SA online, the deadline for submission is 31 January. Again, if the deadline is missed, a penalty charge will be made by HMRC even if there is no tax to pay.

It is worth noting that if there are any errors noted on your SA after submission, either paper form or online version, you can amend your SAs up to 12 months after the 31 January deadline.

What is payment on account?

Payment on account is forward payment of tax put simply. If HMRC ask you to make payments on account, you will have additional tax dates to consider to ensure you are paying your tax on time to HMRC.

Please see full details on payment on accounts here.

Need help completing your tax return?

You can find more information on the HMRC website here.

We support local businesses in the City of London and Greater London area and Edinburgh and the Lothians, as well as U wide, by providing full accounting support and tax advice to help you save on your tax bills.

Why not give us a call to see if we can help you complete your tac return this year and find tax savings for you so you only pay the right amount of tax.