The deadline for Self Assessment tax returns is approaching fast.
Those eligible for Self Assessment have until 31 January 2021 to complete their return, declaring their earnings and expenses for the tax year ending 5 April 2020.
The following categories of small businesses, sole traders and partnership are required to file a Self Assessment return.
- If your income was more than £1,000
- If your income from renting out property was more than £2,500
- If you earned more than £2,500 in untaxed income, such as from tips or commission
- If your gross income from savings or investments was £10,000 or more
- If you pay Capital Gains Tax on profits from selling shares or a second home
- If you’re a company direct (non-profit organisations are exempt)
- If you or your partner’s income was over £50,000 and you’re claiming Child Benefit
- If you have income from abroad that you pay tax on
- If you live abroad but have income in the UK
- If your taxable income was over £100,000
- If you earned over £50,001 and make pension contributions
- If you are a trustee of a trust or registered pension scheme
- If your State Pension was greater than your personal allowance and was your only source of income
If you received a P800 from HMRC
You may also choose to complete a Self Assessment tax return if you wish to make voluntary Class 2 National Insurance Contributions ( towards helping you qualify for benefits such as the State Pension.
You do not need to fill in a Self Assessment tax return if you’re an employee who pays tax through the Pay As You Earn (PAYE) system, unless you earned over £100,000.
At Cooper Accounting, we work with sole traders, partnerships and small businesses from Calderdale, Kirklees, Wakefield and beyond to help them with their Self Assessment tax return.
Get in touch to set up an informal chat.