HMRC has developed a self-assessment online tool that enables taxpayers to determine if they are required to report additional income. Visit www.gov.uk/check-additional-income-tax to access the tool.
You are required to submit a self-assessment return if any of the following apply:
- you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on);
- you were a partner in a business partnership;
- you had a total taxable income of more than £150,000 in 2023-24 (£100,000 in 2022-23);
- you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value; or
- you had to pay the High Income Child Benefit Charge.
You may also need to send a tax return if you have any untaxed income, such as:
- money from renting out a property;
- tips and commission;
- income from savings, investments and dividends; or
- foreign income.
There could be other reasons why you may be required to register for self-assessment and therefore using HMRC’s online tool can help you check if you are required to submit a return.
In addition to the above, it’s important to note that the self-assessment process is not just about reporting income. It’s also a crucial part of your financial planning. It allows you to understand your tax obligations and plan for them accordingly. This can help you avoid any unexpected tax bills and ensure you’re making the most of any allowances or reliefs you’re entitled to. Remember, it’s not just about paying tax, it’s about managing your finances effectively. So, make use of HMRC’s self-assessment tool and stay on top of your financial situation.
