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Who needs to do UK tax self assessment?

Updated: May 5, 2023

Self assessment tax is a system used by HM Revenue and Customs (HMRC) in the UK to collect tax from individuals who have income that isn’t taxed at source. It allows individuals to calculate their own tax liability and report it to HMRC through the submission of a self assessment tax return. But who needs to do UK tax self assessment?

Who needs to do UK tax self assessment?

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In this blog post, we will explore who needs to complete a self assessment tax return in the UK and why.



Self Assessment Tax for the Self-Employed


If you are self-employed and earn above a certain threshold, you will need to complete a self assessment tax return. This is because you are responsible for calculating your own tax liability and paying any tax owed to HMRC.


As a self-employed individual, you will need to keep accurate records of your business income and expenses. This includes any invoices, receipts, and bank statements. You will need to use this information to complete your self assessment tax return, which will include details of your business income, expenses, and any other sources of income.


Self Assessment Tax for Company Directors


If you are a company director and receive income that is not taxed at source, such as dividends, you may need to complete a self assessment tax return. This is because company directors are considered to be self-employed and are responsible for paying their own tax.


As a company director, you will need to keep accurate records of your income and expenses. This includes any invoices, receipts, and bank statements. You will need to use this information to complete your self assessment tax return, which will include details of your income, expenses, and any other sources of income.


Self Assessment Tax for Landlords


If you are a landlord and receive rental income, you may need to complete a self assessment tax return. This is because rental income is not taxed at source, so it is the responsibility of the individual to declare it to HMRC.


As a landlord, you will need to keep accurate records of your rental income and expenses. This includes any rental agreements, invoices, receipts, and bank statements. You will need to use this information to complete your self assessment tax return, which will include details of your rental income, expenses, and any other sources of income.


Self Assessment Tax for High Earners


If you earn above a certain threshold, you may need to complete a self assessment tax return. This threshold is currently £100,000 per year.


If you earn above this threshold, you will need to complete a self assessment tax return in order to report your income and pay any tax owed to HMRC.


Self Assessment Tax for Individuals with Multiple Sources of Income


If you have income from multiple sources, you may need to complete a self assessment tax return. This includes income from self-employment, rental income, and any other sources of income that are not taxed at source.


As an individual with multiple sources of income, you will need to keep accurate records of your income and expenses. You will need to use this information to complete your self assessment tax return, which will include details of all your sources of income, expenses, and any other deductions you may be entitled to.



Self Assessment Tax for Pensioners


If you receive a state pension or other taxable pension income, you may need to complete a self assessment tax return. This is because pension income is not taxed at source, so it is the responsibility of the individual to declare it to HMRC.


As a pensioner, you will need to keep accurate records of your pension income and expenses. You will need to use this information to complete your self assessment tax return, which will include details of your pension income, expenses, and any other sources of income.


Conclusion


In conclusion, there are several groups of people who need to complete a self assessment tax return in the UK.

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