Self-Assessment Tax Returns - FAQs
What is a Self-Assessment Tax Return (SATR)?
Self-Assessment Tax Returns (SATR) are personal income tax returns used to report income to HMRC that isn’t taxed at source via PAYE.
Who might need to file a SATR?
Any individual who has received taxable income not taxed at source.
This can include but it not limited to;
Self-Employed Sole Traders and Partnerships;
Limited Company Directors receiving dividend income above the personal allowance (£12,570) and dividend allowance (£2,000);
Individuals receiving income from property, savings and investments above the relevant thresholds;
An individual looking to claim an Income Tax Relief such as Tax-Free Childcare or Maternity Allowance.
Which dates does a SATR apply to?
The self-assessment (personal) tax year runs from 6th April to 5th April the following year. It should capture income and allowable expenses within this period.
What are the filing and payment deadlines for a SATR?
SATR must be filed by the 31st January (31st October for paper returns) following the end of the tax period (5th April).
For example, for the period 6th April 2021 to 5th April 2022 the return would need to be filed online by 31st January 2023.
SATR that are filed after 31st January incur a £100 late filing penalty plus interest on any unpaid tax.
How can I register for self-assessment?
You can register online via your government gateway account. There are different forms for registering online depending on your circumstances (sole trader, limited company director, etc).
More information can be found here - www.gov.uk/self-assessment-tax-returns/sending-return
Does an employee have to register to file a SATR?
Provided the employee has not received other income not taxed via PAYE (pay as you earn) such as from dividends, property, savings or investments then registering for self-assessment is not required.
How does a SATR apply to a limited company director receiving dividends?
Limited Company Directors are required to submit a SATR if dividends paid exceed the personal allowance (£12,570) plus dividend allowance (£2,000) for the SATR tax year (6th April to 5th April).
For example, a director receiving £20,000 in dividends between 6th April 2021 to 5th April 2022 would file a SATR to report the dividends. They would pay dividend tax at 7.5% on £5,430 of this income (£20,000 - £12,570 - £2,000) assuming no other income was received for the period.
This tax payment as well as filing of the SATR would be due by 31st January 2023.
If a director utilises some or all of the £12,570 personal allowance by receiving other income (PAYE employment, rent, etc.) this would increase the amount of dividends liable for dividend tax.
Can I amend my SATR after filing?
You can make a change to your SATR up to 72 hours after you have filed it. For example, because you made an error in the return.
You will need to make changes to the SATR by the 31st January two years after the 5th April deadline. For example, by the 31st January 2023 for the 2020/2021 tax year.
If you miss the deadline or if you need to make a change to your SATR for any other tax year you will need to write to HMRC.
Are there any upcoming changes planned to the SATR?
Changes are planned to incorporate the SATR within HMRCs “Making Tax Digital” (MTD) scheme, known as MTD for ITSA (making tax digital for income tax self-assessment).
You may be required to file quarterly MTD ITSA returns plus an end of period statement (EOPS) from April 2024 depending on your circumstances.