You will need to prepare and submit a self-assessment tax return for the 2020/21 financial year if you:
- Earned over £2,500 from letting property (after deducting allowable expenses)*
- Received more than £10,000 in rental income (before deducting allowable expenses)
- Or your partner received Child Benefit and either of you had an annual income of more than £50,000
- Receive more than £2,500 in untaxed income e.g. commission or tips*
- Are self-employed sole trader and earned over £1,000
- Are a partner of a business partnership
- Receive over £10,000 in dividends*
- Earn more than £10,000 from savings and investments *
- Are an employee claiming expenses worth over £2,500
- Have an annual income over £100,000
- Earn income from overseas that is liable for tax
- Received income from a trust
This list is not exhaustive, but it will hopefully give you an idea of the sort of things that can trigger the need for a tax return.
If you are having to complete a self-assessment tax return for the first time and don’t know where to start, we can help.
We love working with self-employed professionals and independent business owners and if you are not receiving the service and support you deserve from your accountant then please talk to TaxAssist Accountants on 0800 0523 555 or drop us a line using our online enquiry form. We offer free initial consultations, advice and support over the phone or via video meeting if you have any concerns about face-to-face meetings.
* If you earn less than these limits, you may not need to complete a tax return to report your income. However, the income is still likely to be subject to tax so you should contact HMRC so that they can decide how best to collect the tax due.
Last updated: 6th April 2021This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.