What are Self-assessment tax returns?

These are tax returns issued by HM Revenue and Customs (HMRC) for completion by UK taxpayers. The regime was introduced in 1997 with the idea of simplifying the UK tax system and it is certainly a matter of debate if this has been achieved!

Who needs to file a return?

For most individuals in the UK, their income is taxed at source, such as employment income which is taxed under the PAYE system. Therefore, most people generally will not need to file a self-assessed tax return. However, if there is any income or profit that is either not taxed or additional tax is payable, it is the responsibility of individuals to notify HMRC. Generally in all circumstances if HMRC issues a self-assessed tax return it must be completed and must be filed. Below are several examples where tax returns are generally required to be filed.

An individual who receives rental income.

If you have any doubts about your need to complete the tax return, it is recommended whether you seek professional advice from a Chartered Accountant or approach HMRC. In addition a self-assessed tax return can also be filed to recover the tax paid.

When does the return need to be filed?

The tax return covers all income and gains for the financial year, from April 6 in one year to April 5 in the next. There are additional rules if a late return is issued by HMRC, but generally if you wantthat HMRC calculate the tax for you or if you wish to file a paper tax return So the filing deadline is October 31 after the end of the tax year, otherwise it is January 31 after the end of the tax year.