Many workers go through their working life never having encountered HMRC’s form SA100 – Tax Return for Self Assessment. With economic pressures such as growing inflation and the significant impact of the rise in cost of living, more people turn to a second job or turn to other sources to help supplement their income and pay the bills.
In such circumstances, you may well need to file form SA100. Also, many underestimate the complexities of income sources and types that can also affect whether you need to file or not. Here’s why and how to check to see if you do.
The SA100 Self Assessment tax return form
Mention form SA100 to an average person in employment and they may have never heard of it. This is because employees are on what’s known as PAYE – Pay As You Earn. Simply put, the taxes and national insurance you owe as a result of being employed are paid automatically to HMRC through your wages. They appear on your wage slip as things like Tax, NI, pension payments and adjustments for personal allowance and benefits in kind.
Those who do need to annually complete an SA100 include:
- Those who are self employed
- A company director with income not taxed through PAYE
- A partner in a partnership business
- A minister of religion
- A trustee or the executor of an estate
For the most part, the only encounter the average employee will have with HMRC is through the Notice of Coding you may receive when your circumstances change – such as changing jobs or receiving benefits in kind. However, there are circumstances where you will most likely need to complete and return an SA100 Self Assessment tax return. Here are most of those instances.
Regardless of whether any of the situations below apply to you, HMRC may still ask you to complete a Self Assessment tax return.
If you believe any of the factors below relate to you, the government has an online tool to further help you assess your tax position and the need to fill out an SA100, here.
Circumstances that may require you to complete and return an SA100 Self Assessment tax return
A company director
If you are a company director and receive an income that is not taxed at source, you’ll need to complete an SA100. This typically includes basic salary and any dividends and any benefits in kind.
Sources of untaxed income
This may be from interest on bank accounts, shares, or rental income, for example. If this is below £2500 per year, even though you may not need to complete an SA100, you must still notify HMRC of the income. You can do that here.
Also, if you receive any other untaxed income which cannot be collected through your PAYE tax code, you will have to file an SA100.
Trust or settlement income
Regular annual income from a trust set up for you or from a divorce settlement will need to be reported through an SA100. Also, if you receive income from the estate of a deceased person, that tax has not been paid on.
Foreign sourced income
There are many potential sources of foreign income, including:
- If you worked abroad and received wages
- Investment income from overseas share dividends or foreign bank account interest. However, foreign dividends will be covered under your UK dividend allowance.
- Income from overseas pensions
- Overseas rental income
Find out more at the government’s site here.
Non-resident and receiving income
You are a non-resident, but that doesn’t necessarily exclude you from paying taxes in the UK. This would include non-resident landlords.
You can find out more here.
Income from savings and investments
If income from these sources exceeds £10,000 before tax, you’ll need to report it.
Annual income exceeds threshold
Report through the SA100 if your annual income exceeds £100,000 before tax.
Child benefit and adjusted net income
You or your partner receive child benefits. The higher income child benefit charge will apply if your adjusted net income is over £50,000.
Other tax charge liabilities
An excess in Gift Aid contributions or pension contributions.
State Pension lump sums
If you deferred a state pension lump sum from April 6 2016, you’re liable to tax on this payment.
Coronavirus payments
If claimed a coronavirus support payment incorrectly and have not already paid this back, you’ll need to report this.
Expense claims
You have claimed £2,500 or more in expenses for the tax year, this needs to be reported.
Capital gains
You’ll need to check whether any of the following is true. However, capital gains calculations can be a little tricky. You can find out more here or call TaxAgility and we may be able to assist.
- Assets sold or bestowed worth £49,200 or more for the tax period 2022/23
- Where you have capital losses, but gains net of losses exceeds the 2022/23 £12,300 annual exemption.
- Gains greater than the annual exemption of £12,300 in 2022/23.
In the case of capital gains arising through a residential property sale, you need to complete a separate return within 60 days of the property’s sale.
How TaxAgility can help
Every year around December and January, we receive many requests for assistance with personal tax returns and filling out the SA100. This is because, every year, people underestimate the implications of their tax situation. Unfortunately many leave it to the last minute to fill out the form believing there’s to be a simple case and realise otherwise.
You can avoid this stress and hassle if you review your sources of income and the factors listed above. Upon doing so, if there are any issues you feel are not so simple, simply call us and ask us to assist with your SA100 Self Assessment tax return. This will help you avoid the potential for penalties for late returns and inaccurate declarations.
Call TaxAgility today on 020 8108 0090 and speak to one of our knowledgeable team members about how we can help you with your SA100 Self Assessment Tax Return.