Tax Tip Week 29 – Completing your Self-Assessment Tax Return
Professional Contractors and Freelancers who are a Director of a Limited Company must file a Self-Assessment tax return.
All income from 6th April 2008 to 5th April 2009 needs declaring on the SATR. The filing deadline is 31st January 2010 if completed on-line and 31st October 2009 for paper filing.
SATR's are usually sent out by HM Customs and Excise in April following the end of the tax year. If you do not receive one and you are a Director you must contact HMRC to send a paper one to you or register on the Government Gateway for a unique tax reference (UTR) to file on-line. As the tax payer and Director, the liability falls on you to file a return.
If you receive an SATR and are paid under PAYE, you are still required to file it even if you have no further tax to pay. Failing to do so will incur a penalty of £100.
Who needs to file a Self-Assessment tax return?
Anyone who receives additional income, both earned and unearned income such as dividends; that was not subject to PAYE where tax and national insurance contributions will have been deducted accordingly will have to file a tax return. The following people have to file one regardless of whether an additional income has been earned:
· A Director of a limited company (except for not for profit businesses)
· A Self-Employed person
· A member of a Partnership
· A Trustee
· Anyone receiving foreign income who is a UK tax resident
· Any minister of any faith
· Anyone receiving income from a trust
· Anyone receiving income from a deceased estate where further tax is due
· Members or ‘Names' of Lloyds
· A person receiving rental income from property (if paid PAYE and rental income is less than £2500 per annum, it may not be necessary)
· A person who is deceased and has filed returns in previous years will need to have a tax return filed by a representative
By a rule of thumb, anyone receiving income that is NOT taxed at source will be required to file a personal tax return. Anyone who needs to file a return but has not received one can request the form from their tax office.
Persons that have received additional money by way of selling shares, a large inheritance, sold a second property may also be subject to capital gains tax and will have to file a tax return.
For information on how to complete your SATR please see our guidance - Self-Assessment Tax Returns 2008-2009 in our knowledgbase.