There are a number of different reasons why an individual completes a self-assessment tax return, the main reasons are as follows:
- You are a company director who has income not taxed under PAYE
- You have income from self-employment
- You have income from savings and investments of £10,000 or more before tax
- You have annual income of £100,000 or more before tax
- HMRC has sent you a tax return
The self-assessment return details all of your income and any tax which has been paid on each form of income. Once complete it is sent to HMRC either on paper or online. The information on the tax return is used to calculate your tax liability.
The UK tax year runs from 6th April to the 5th April.
The deadline for submitting the tax return to HMRC is the 31st October if competing the paper form or the 31st January if submitting online, following the end of the tax year. This is also the date that the first payment on account is due to HMRC. The second payment on account is due to HMRC by the 31st July.
Payments on account
The payment on account is a way of ensuring you pay off some of your tax bill in advance. The first instalment is due on 31 January (the same day as your ‘balancing payment’, which clears your tax bill for the previous tax year), and the second is due on 31 July consequently enabling you to spread your payments out a little.
Download our Key dates & deadlines guide here
If you would like AJR & Co Ltd to compile your self-assessment then contact us to arrange a free 30 minute consultation