Self-assessment tax returns are a complex burden for private individuals and business owners alike, but Cobble is here to help.
Our chartered tax advisers are experienced in minimising tax liabilities whilst maintaining accurate compliance with HMRC self assessment regulations.
Whether you're an individual, sole trader, or part of a business partnership, choose our personal tax service for peace of mind when it comes to keeping on top of your income tax obligations.
What is a self-assessment tax return?
HMRC collects income tax through their self-assessment system. Typically deducted automatically from salaries and pensions, individuals and businesses with additional income must declare it on a self-assessment tax return. This is a form submitted to HMRC detailing income, expenses, and the overall financial position of an individual or business.
Read our blog “What is a self-assessment tax return?” for more information.
How do I know if I need to file a self-assessment tax return?
You are required to file a self assessment tax return if you meet any of the following criteria in the last tax year:
You were self-employed as a 'sole trader' and earned over £1,000.
You were a partner in a business partnership.
Your total taxable income exceeded £100,000.
You were liable to pay the High Income Child Benefit Charge.
Additionally, a tax return may be necessary if you have untaxed income, such as COVID-19 grants, rental income, tips, commission, or income from savings, investments, and dividends.
Click here to check if you need to file a self assessment tax return.
What happens if you don't file a self-assessment tax return?
Failing to meet the deadline for submitting a self assessment tax return or paying your tax liability incurs penalties.
If your tax return is up to 3 months late, you'll face a £100 late filing penalty, with increasing penalties for later submissions or delayed tax bill payments. Additionally, late payments are subject to interest charges.