Historically the number of people required to complete a self-assessment or personal tax return was limited. But the growth in start-ups, entrepreneurs, the self-employed and a general trend towards having more than one source of income means that more than 11 million people were liable for self-assessment in 2020. There are even instances whereby miscellaneous income from eBay sales and Air BnB rentals have pushed individuals over certain thresholds or had a significant impact on their income across the course of a year.
Self Assessment Tax Return
Do I Need To Complete A Self-Assessment Tax Return?
When an individual is self-employed, earns a significant income or is a company Director, they are required by law to carry out a self assessment of their personal tax liability. This process considers income from jobs, dividends, shares and savings – those items which pay you a regular/frequent amount of money. In most cases, a tax return needs to be submitted if your circumstances match one or more of the following:
- You are self-employed and earnings exceed £1,000
- You are a company director
- Your annual income is £100,000 or more
- You have income from savings, investments and/or property
- You need to claim expenses or tax reliefs
- You or your partner receive Child Benefit and your income is over £50,000
- You get income from overseas and/or from trusts, settlements and estates
- You have disposed of assets either by sale or gift
- You’ve lived or worked abroad and/or aren’t domiciled in the UK
- You’re a trustee