HMRC is urging first-time Self-Assessment customers to register for a Personal Tax Account.
The changes to the taxation of investment income (including dividends and bank interest) mean that many taxpayers will now no longer need to submit tax returns but those who are basic rate taxpayers and who have more than £5,000 of dividend income, for example, or where savings income exceeds the Personal Savings Allowance, will now need to register for self-assessment and pay this tax, which will no longer be deducted at source.
Those submitting their tax return online for the first time will need to register for an activation code, which will be posted to them, and can take a couple of days to arrive. Those doing so for the first time will need:
- Their National Insurance number
- Either a recent pay slip or P60 (a passport can be used if you don’t have these)
- A phone to receive a security access code
To register and enroll, go to http://www.gov.uk/selfassessment
Autonomy Wealth View: As the Dividend Allowance and Personal Savings Allowance only came into effect at the start of this tax year and the deadline for 2016/17 tax returns is not until 31st January 2018, there is plenty of time to register. Given the radical changes to the taxation of investment income it would be easy to overlook some of these changes, or think they do not apply to you. If in doubt, please get in touch.