3 Things You Might Not Know About Self Assessment Tax Returns
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With the tax return filing deadline just around the corner (31st January if you weren’t sure!), here are 3 things you might not know about self assessment tax returns.
High Income Child Benefit Charge
If you receive child benefit and your individual income is over £50,000 then you may have to pay a high income child benefit charge.
If both your and your partners individual income is over £50,000 then whoever has the highest income will be liable for the charge.
If you earn over £50,000 then you have two options:
- Continue to receive child benefit and pay the tax charge at the end of each year
- Stop receiving child benefit
If you choose to continue to receive child benefit then you’ll need to submit a self assessment return each year to pay the high income child benefit charge.
Trading Allowance
Started a side hustle during Covid?
The first £1,000 of income from self employment is tax free. This means you don’t need to submit a tax return until earning over £1,000 from that new side hustle!
If your other income is between £1,000 and £2,500 then you need to notify HMRC.
Earning over £2,500? Then you’ll need to report your earnings on a self assessment tax return.
Property Allowance
Do you earn income from property? If so, the first £1,000 of the gross income is tax free.
If you earn between £1,000 and £2,500 then you need to notify HMRC and if earning over £2,500 you must register for self assessment.
If in doubt get in touch and we can let you know your options!
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