1. Do I need to complete a Self Assessment tax return?
2. Register with HMRC
3. Maintain records
4. Deadlines
5. Completing your Self Assessment

6. Paying your Self Assessment

The Ultimate Self Assessment Checklist

October 4, 2021

For directors of limited companies, the self-employed and sole traders, the Self Assessment tax return deadline always seems to roll around a little too quickly, with a lot of self-employed workers typically leaving their submissions to the last minute.Unlike employees who have their tax deductions – such as Income Tax and National Insurance contributions – taken at source, self-employed workers (and sometimes other individuals, which we will cover further down) must report all of their income and expenses and pay their tax bill.If this is the first time you need to submit a Self Assessment or you aren't sure whether you need to complete one, then read through our Self Assessment checklist. We've set out all of the steps involved and listed all of the information needed to complete your tax return.

Do I need to complete a Self Assessment tax return?

The tax year runs from 6th April to 5th April. You must submit a tax return if in the last tax year you were:

self-employed and earned more than £1,000 (before taking off anything you can claim tax relief on)

a partner in a business partnership

At this point, you might be trying to work if your fall under the category of self-employed. You are classed as self-employed if you run your own businesses and are responsible for whether it is a success or a failure. If you are employed and self-employed at the same time e.g. working for an employer and running your own business in the evenings and on weekends, then you will still need to submit a tax return for your self-employed business activities. You may also need to submit a return if you have untaxed income from:☐ renting out a property (if above £2,500)☐ tips and commission ☐ savings, investments (if above £10,000)☐ dividends (if above the dividend allowance)☐ foreign incomeIf you are unsure if you have to declare it in a Self Assessment or pay any tax, you can use the HMRC tool to check.

Register with HMRC

You have to register with HMRC to inform them you need to submit a Self Assessment tax return and you'll need your National Insurance number and business details to do so. Once registered, HMRC will send you a Unique Taxpayer Reference (UTR) number. You need your UTR number for submitting your tax return online or as a paper copy. If you intend to submit your return online you'll need your UTR to register for HMRC online services.You must register with HMRC by 5th October in order to submit a return for the previous tax year. For example, if you need to complete a Self Assessment for the 2020/21 tax year, you will need to register by 5th October 2021.

Maintain records

By the time it comes to completing your Self Assessment, you could have months of invoices, statements and receipts stacked up. That's why it's important to keep accurate records that helps to speed up the time it takes to complete your return. You'll want to keep track of:☐ self-employed income (invoices and expenses)☐ employment income (P60 or P45, if applicable)☐ dividends☐ income from shares or investments☐ rental income☐ pension income☐ partnership income☐ capital gains☐ gift aid☐ redundancy payment☐ P11D

Deadlines

The dates for completing your Self Assessment online or as a paper copy are different. HMRC must receive your return by:☐ 31st October – if submitting a paper copy☐ 31st January – if completing an online return

Completing your Self Assessment

Business and personal details:

You will need to list your:☐ UTR number☐ National Insurance number☐ Employer reference (if you have one)☐ Date of birth☐ Name and address☐ Telephone Number

Additional forms

Depending on whether any of the below are applicable to you, you may need to complete supplementary sections or additional forms.Employment: You will need to complete an SA102 if you:☐ work for an employer who deducts PAYE☐ received income as a company director☐ held a position in office and received income for that workSelf-employment: If self-employed, you will need to complete:☐ SA103S - if your turnover was less than £85,000☐ SA103F - if your turnover was £85,000 or morePartnership: If you are in a Partnership and are required to complete a Partnership Tax Return (SA800), you will need to complete either an SA104S or SA104FUK Property: Complete an SA105 if you received:☐ rental income from UK property of over £1,000Foreign: You will need to complete an SA106 if you received income from:☐ offshore savings☐ dividends from foreign companies☐ income from overseas propertyTrusts: Complete an SA107 if you:☐ received income from a trust or settlement☐ received income from a deceased person's estateCapital Gains Tax: Complete an SA108 if you:☐ sold or disposed assets worth more than £49,200☐ have CGT gains of more than £12,300 (before taking off losses)☐ have gains in an earlier year that are now taxable in this periodResidence, remittance basis: Fill in an SA109 if for all or part of the tax year you were:☐ not a resident in the UK☐ not domiciled in the UK☐ a dual resident in the UK and another countryAdditional information: You may need to complete an SA101 form if you have received income from the likes of:☐ married Couple's Allowance☐ gilt-edged and other UK securities☐ gains from life insurance policies

Income

In this section, you will need to record:☐ taxed and untaxed interest☐ dividends from UK companies and/or foreign dividendsIf you are retired you will need to detail the:☐ amount of state Pension you were entitled to receive for the tax year☐ gross amount of any State Pension lump sum☐ gross amount of any pensions, other than State PensionIf you have received State Benefits you need to record:☐ taxable incapacity benefit☐ Jobseeker's allowance☐ any other benefitsYou also need to list:☐ other taxable income☐ allowable expenses☐ Benefit from pre-owned assets

Tax reliefs

Pension contributions

Do you pay into a registered pension scheme (not including an employer's pension scheme)?If yes, you will need to list any:☐ payments to a registered pension scheme☐ payments to an annuity contract☐ payments to an employer's scheme that were not deducted from your pay before tax

Charitable giving

Record any:☐ gift aid payments☐ shares or securities gifted to charity☐ the value of any land or buildings gifted to charity☐ the name of the local authority you are registered with☐ if you want to claim your spouse's allowance, or☐ if you want you spouse to claim your allowance

Student loan

☐ Specify if you are currently repaying your student loan

High Income Child Benefit charge

Complete this section if:☐ you are receiving Child Benefit, and☐ your income was over £50,000

Marriage Allowance

Complete this section if:☐ your income for the tax year was less than £12,500 and you want to transfer your Personal Allowance to your spouse or partner

Paying your Self Assessment

When you submit your Self Assessment, HMRC will calculate how much tax you owe and tell you the amount you need to pay. You Self Assessment needs to be paid by the 31 January, which you can do by:

online or telephone banking

CHAPS

debit card

in person at your bank or building society

bank transfer

cheque

direct debit

However you send your payment, make sure it has enough time to arrive and clear. If you miss the payment deadline you'll get a £100 penalty (the penalty amount increases if you miss the deadline by over 3 months).If you are unable to pay your tax bill then it is important that you contact HMRC as soon as possible. They will investigate your Self Assessment return and may give you more time to pay or allow you to set up a payment plan. At Ember, our in-house qualified accountants can draft and send your Self Assessment to HMRC for you, all for a flat fee of £99.

Cam FinneyHead of CX

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