3 things you might not know about self assessment tax returns
/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!
