Do I Need to Register for Self Assessment Tax if I’m Not Self-Employed?
If you're in Self-Assessment, you must submit a tax return every year. You have to declare your income or capital gain and request any allowances or reliefs. A majority of people don't have to register with the Self-Assessment tax if they are not self-employed. However, there are some exceptions. We will explain how this could be applicable to you if you are Not Self-Employed. First, take an overview of what is self-assessment tax:
What is a Self-Assessment Tax Return?
If you're self-employed or have other multiple sources of income you'll most likely have to file a self-assessment return for tax purposes. Self-assessment reports to HMRC what amount of money you've earned this year, along with other information regarding your financial situation, to ensure that HMRC will be able to calculate your tax liability or the national insurance (NI) you are liable for. This is also referred to as "filing your annual tax returns: and, you can also complete it online. The phrase "self-assessment" does not suggest that you need to do it all by yourself. You could hire a tax accountant to take care of all the tasks for you. A tax accountant is able to fill out the form accurately for you and help you minimize the amount of tax you need to pay by avoiding paying any unpaid taxes.
After you've filed your tax returns, HMRC will calculate the amount of tax to be paid. They will then send you your notice of assessment and you can check it through your online account at the government's website. Then You have the option of paying the tax, typically by debit card online or by post.
Who Needs to Submit a Self-Assessment Tax if They’re Not Self-Employed?
HMRC requires information on any earnings you may receive to ensure that you pay the correct quantity of tax. Some earnings may come from self-employed people, and you may need to register for a Self Assessment tax to tell HMRC about any income you earn from a different source. This could be the case in the event that you:
● Earn any money from property or land that is located within the UK
● Receive taxable foreign income over £300
● Sell shares, property or any other asset that is susceptible to Capital Gains Tax
● Become a director of a company (even if you do not pay yourself dividends)
● Earn greater than £100,000 per year
● Get any income that isn't taxed and can't be collected by your tax code.
How Do I Register for Self Assessment Tax if I’m Not Self-Employed?
The process for registration to Self Assessment depends on whether you're self-employed or not. If you're not self-employed you're able to fill out and send the SA1 form via post or make an online application.
When Should I Register?
If you didn't file your tax return last year then you'll need to register to participate in Self Assessment by 5th October following the conclusion of that tax period you have to file the tax return for. The first tax return you file is due on 31st January of the next calendar year if you file online. The deadline is October 31st for the following year, paper tax return.
What Happens When I Sign Up With Self Assessment?
HMRC will issue you a Unique Taxpayer Reference (UTR). You will also be notified each time your tax return is due. If your situation has changed and you are no longer required to file your tax return, inform HMRC as quickly as you can. When you're the first to register for the HMRC web-based services (which you'll be using to prepare the SA tax returns) you'll be provided with the activation number. This could take a few weeks to be delivered and you should make sure you sign up on time to file your tax return.
How a Tax Advisor Can Help?
Tax accountants have plenty of knowledge. They also know the rules of the game: the rights you have and ways to minimize the burden. The price for a tax accountant to prepare a tax return for a small amount generally is about £250, which is the average of an established company. The cost will be less for those who only require the most basic of services, and it is possible to pay more if there are more complex questions. Employing a tax accountant can alleviate anxiety, but more importantly, it will reduce your time.
Self-assessment is simple for those whose financial issues are easy and who know the basics of what you're doing. But, it can be a lengthy process and you could be paying more taxes than is necessary when you're not certain of the tax benefits and costs you could be entitled to. In the worst case, mistakes could result in penalties. So, with more complicated accounts, it's recommended to employ a tax accountant to help you with your tax returns. "Pro Tax Accountant" has a team of specialists who can assist you with your Tax Self-Assessment. Contact us now!