Who Needs To Register For Self Assessment Tax Return?

The self assessment form is an essential part of the tax planning and tax return process for some people in the United Kingdom. Doing so will ensure you are not stung by large fines by HMRC. However, it can cause a lot of confusion about who exactly needs to complete the form.

1. What Is Self-Assessment?

For most people, tax will automatically be handled automatically by their employer. However, this becomes a lot more complicated in certain circumstances – particularly when you are the director of a company or you are working under your own employment. It is you that needs to tell HMRC how much you owe them, and a self assessment form needs to be completed once per year to do this.

2. Who Needs To Complete A HMRC Self Assessment Form?

If in the last year you have been any of the following things, you will need to complete a self assessment tax return form:

  • A trustee of a trust
  • A trustee of a registered pension scheme
  • You earned over £100,000 in income
  • You have lived abroad but earned an income from the UK
  • You have earned income from abroad that you paid tax on
  • You or your partner claimed Child Benefit despite earning over £50,000
  • You have been a company director for any for-profit business (unless you get paid or benefits)
  • You made money by selling shares, a second home, etc. and need to pay the Capital Gains tax
  • Your savings or investment income was at least £10,00 before tax
  • You earned at least £2500 in income that wasn’t taxed (e.g. renting a property)
  • You have been self-employed

3. If I’m Self Employed, How To I Register For Self Assessment?

You will need to register as a sole trader if you work for yourself.

If you have never done it before, you will need to contact the tax return team and tell them you wish to register as a new business. This will allow them to register you for Self Assessment.

If you have already done this before – for instance, if you did it to let HMRC know about investment income – you will be able to keep your existing Self Assessment account but you will need to register as self employed with the CWF1 form. Look at previous documents or log in to your online account and you will be able to find the 10 digit UTR (unique taxpayer reference) necessary for doing this.

4. If I’m NOT Self Employed, How To I Register For Self Assessment?

If you are not self employed and simply need to fill out a self assessment form based on your financial circumstances, you will need to first fill in the SA1 form which tells HMRC that you wish to send a tax return. You will then receive a UTR (unique taxpayer reference) after about two weeks (or four if you are living outside of the United Kingdom).

People in this situation can also enroll for the self assessment online service with your UTR. This will give you an activation code, which is delivered in the post within around two weeks for UK residents. You can then log in to the HMRC website with your password and ID and gain access with this code. It will expire after 28 days.

5. Do I Need To Register For Self Assessment On Behalf Of Someone Who Has Died?

You need to report a death to HMRC as soon as possible to deal with the tax affairs of someone who has passed away. You should contact the tax return number to do this. HMRC will discuss a few facts about the deceased (usually including the date of their death and the name and address of who should be the first point of contact) and you will also need to provide their National Insurance number, pension provider or last employer, and unique taxpayer reference. If HMRC require you to fill a self assessment tax return on their behalf you will need the details of their bank account or savings account as well as proof of their income (via work or pension payslips). You will then need to register for Self Assessment as discussed under point 4.

When Is The Self Assessment Deadline For Registration?

You need to register by 5th October. The registration process will take four working weeks to complete.