Employed Self Assessment Checklist
Sometimes you will be an employee but still need to file a Self Assessment to HMRC due to various reasons such as:
- You own shares in your own company or a publicly listed company
- You have property rental income
- You have benefits through your employer such as a company car, a fuel card or medical insurance
- You have large savings or other investments
- You are a high income earner with income over the £100,000 threshold
- You sell a property, shares or other capital items for a profit
- You or your partner receive Child Benefit and one or both of you earn over £50,000 per year
- You make charitable donations
- You make personal pension contributions
In order for us to complete your Self Assessment, please use this checklist to review what information we will need from you to be able to ensure we can file the return efficiently and correctly and make sure youdo not pay a penny more than you need to
For shares in your own company we will normally have the information from completing your bookkeeping. If you own shares in a publicly listed company eg the big banks or utility companies, we need to know exactly how much you received and when during the tax year. Normally you will have received a dividend voucher which has those details but if you simply see the money land in your bank account let us know the company you received it from and the number of shares you have and we can look up the exact details in our database.
Property Rental Income
If you have property rental income please see our separate checklist page here. For the Rent-A-Room scheme the 17-18 threshold was £7,500 of income which is tax free. We only need to declare this if you exceed the threshold, however we can choose the most efficient method to declare this profit to reduce your tax bill.
Benefits In Kind
If you receive any “benefits-in-kind” such as a company car, a fuel card, medical insurance etc your employer should give you a P11D(b) form for each tax year showing how much the benefits were worth and if you contributed anything towards them. Please forward this on to us as soon as you receive it as this can give rise to a tax bill if it has not been dealt with correctly through your PAYE tax code. Unhappily this happens quite often.
Savings tax rules have changed significantly in recent years and from the 6th April 2017 onwards we are only concerned about declaring your interest earned on savings over £1000 per year if you are a basic rate tax payer or over £500 if you are a higher rate tax payer. Usually your bank can provide you with a summary of the interest earned per bank account (or you might be able to see it on your online banking). Also please ensure to let us know if any are joint bank accounts as the interest earned gets split between both parties involved. These changes should mean 95% of people no longer pay tax on their savings.
Generally if your income is over £100,000 per year you will generally be on Self Assessment anyway. There are many complication in the tax system over this level with you losing various allowances for example and it is difficult for the PAYE system to accurately ensure your tax is correctly paid. We will need all of the information covering your various income, benefits and any expenses we might be able to claim.
If you sell a property other than your main home, you might have to pay Capital Gains Tax on any profit made on the sale. We can help calculate this and ensure you pay as little tax as possible so please make sure we have the following information to be able to do this complex calculation for you:
- Date you bought the property
- Purchase price
- Legal fees and stamp duty paid
- The dates you used the property as your main personal residence
- The date you sold the property
- The sale price, agent fees and legal fees
- For share sales we will need to know the following please:
- The date the shares were bought
- How much they cost
- Any fees for purchasing them
- The date they were sold
- How much they were sold for
- Any fees for selling them
- We also need to report any losses as they can offset any profits so do not forget to include those as well.
Child Benefit may need paying back if one or both parents earn over £50,000, but if both parents earn just under the limit then nothing needs repaying! Bizarre but true. If your income is between £50,000 and £60,000 per annum then the repayment is tapered and it results in everything being paid back if your earnings are over £60,000.
Please double check if you received any Child Benefit and let us know. Unfortuantely we have seen many clients having had a lot of trouble getting it cancelled by HMRC, often taking multiple attempts over several years before it finally gets stopped. For further information please check out the HMRC Child Benefit page found here and the HMRC calculator here as well.
Charitable donations through the Gift Aid scheme need reporting on your Self Assessment and we will need the name of the charity, the amount donated and the date. You get tax relief on the gross amount and the charity gets extra money from HMRC as well eg you donate £100 to charity – they will claim Gift Aid to make your donation up to £125. If you pay 40% tax you can claim back £125 * 20% which is £25against your final tax bill
Other State Benefits
You might have been in receipt of other state benefits so it is worth knowing which of them are taxable and need reporting on your Self Assessment and which are deemed to be tax free. Click here for a comprehensive list of benefits to help you understand how they are categorised.
Personal Pension Contributions
If you make any personal pension contributions in addition to any pension contributions though your PAYE earnings, please ensure to let us know exactly how much you contributed during the tax year as this can extend your Basic Rate Tax Allowance which means it can save you money on your tax bill.
This covers the most common areas of information needed for your Self Assessment tax return, but if in doubt give us more information rather than less and we will decide what can be claimed for.
Of course, if you have any other sources of income eg self employment, any property rentals or of course any State Benefits then these should also be reported. Use our other Self Assessment Checklists for each type of income and also check through our list of Taxable State Benefits for guidance.