by Mohamed at Taxfile.

In today's guide, we look at the rules around whether or not you need to register for Self-Assessment and submit a tax return to HMRC each year. Let's take a look.

Reasons to Register for Self-Assessment

You generally need to register for a Self-Assessment tax return if your income isn't taxed at the source, meaning the tax isn't automatically deducted from your wages/salary. Here are some common scenarios where you would need to register for self-assessment:

The post Do I Need to Register for Self-Assessment? appeared first on Taxfile.

Are you a sole trader or in a partnership? 

Do you have different accounting dates from the standard 6th of April to the 5th of Apri?

If you answered YES to both questions, some IMPORTANT changes will apply for the tax year 2023-24.

The concept of the basis period determines the time frame used to calculate taxable profits or losses for self-employed individuals, partnerships, and some trusts.  It marks a departure from the traditional "current year" basis, where business profits were taxed based on the accounting period ending within the tax year. Instead, it introduces a "tax year" basis, aligning taxable profits with the UK's standard tax year, running from 6 April to 5 April.

The post Understanding Basis Period Reform for Self-Assessment Tax in the UK appeared first on Taxfile.