SAM100060 | Records: set up taxpayer record: criteria for an SA record

An SA record is required where an individual has either completed form CWF1 or SA400 or SA401 or SA402 or SA1 and/or they fall into a category below. (See SAM100001 for general information on these forms).

For tax years up to and including 2015-16

• Is receiving income from letting any property or land that exceeds £10,000 gross or if the net amount is more than £2,500

• Is an employee or pensioner and is in receipt of savings or investment income (from which tax has been deducted) of £10,000 or more (before tax)

For tax years 2016-17 onwards

• Is receiving income from letting any property or land that exceeds £10,000 gross or if the net amount is more than £2,500

• Is receiving income from savings and investments of £10,000 or more before tax

• Is receiving income from dividends of £10,000 or more before tax

For tax years 2017-18 onwards

If customers qualify for the Trading Income Allowance and have turnover up to £1,000, they would not usually have to register for self-assessment.

However, there are four groups of customers who should register as self-employed and be set up in Self-Assessment

• Customers who want to pay voluntary Class 2 National Insurance contributions for 2017-18 to build entitlement to contributory benefits like the State Pension.

• Customers who want to preserve their record of self-employment for example to support an application for Maternity Allowance.

• Customers who incur childcare costs and would like to claim Tax Free Childcare based on their self-employment income.

• Customers who are Sub contractors and want to claim back their CIS payments

If customers qualify for the Property Income Allowance and have turnover up to £1,000, they would not usually have to register for self-assessment.

However, non-resident landlords who want to claim back tax paid under the non-resident landlord scheme would have to register for self-assessment.

For all years

• Is receiving income from self-employment (this includes foster carers) or a partnership source (partnership returns will also be required)

• Is a Minister of Religion (of any faith or denomination)

• A Share Fisherman

• Is receiving untaxed income of £2,500 or more (this does not include State Pension if this is being collected through the PAYE tax code)

• Is receiving Income from property that exceeds £10,000 gross, irrespective of the amount of expenses to be set off, or if the net amount is more than £2,500

• Is receiving (or can be treated as receiving) income from a trust or settlement or any income from the estate of a deceased person and further tax is due on that income

• Is a Name or member of Lloyd’s

• The individual or their partner is entitled to receive Child Benefit (or someone else claims Child Benefit for a child who lives with the individual) which is liable to the High Income Child Benefit Charge (from 2012-13), and the individual has the higher adjusted net income. For tax years 2024/25 onwards High Income Child Benefit charge is SA criteria only if the customer chooses not to pay the charge via the PAYE sevice

• Is receiving unauthorised payments from a pension scheme which are liable to a tax charge, including those payments which are liable to unauthorised payment surcharge

• Is making a claim for Community Investment Tax Relief

• Enterprise Investment Schemes Relief and/or, Seed Enterprise Investment Scheme Relief where the total relief claimed is £10000 or more

• Is in repayment of student and or postgraduate loan and is subject to off payroll working rules

• Has Capital Gains Tax to pay after the annual exemption and has not already paid Capital Gains Tax by completing a Capital Gains Real Time Transaction

Paying tax on foreign income

You usually need to fill in a Self Assessment tax return if you’re a UK resident with foreign income or capital gains. But there’s some foreign income that’s taxed differently.

You do not need to fill in a tax return if your only foreign income is dividends which will be covered by the dividend allowance and you do not have anything else to report.

You will need to complete a tax return if you have UK tax to pay on your foreign income, even if the amount is small or has already been taxed abroad.

See also subject ‘Criteria For A PAYE / SA Record’ (SAM100050).