Is self-assessment registration necessary?

T.C.

Can someone please help me here? I have taken on a new client who is registered for self-assessment, no problem. However, his wife is not registered for self-assessment but does have a small income (approx £5K). Does she need to register under the new rules?? I am thinking not. :001_unsure:

Newbie

Hi it depends on the source of the income, there is an obligation on the taxpayer to notify charge-ability, sounds like if £5k it may be under the PA but best to check this.

jamesm96

Yeah she does, technically:

http://www.hmrc.gov.uk/sa/introduction.htm#1


And, of course, if they ever applied for a loan / mortgage and needed to include her income to support the application then they'd need to evidence that income by tax returns / SA302s. Also, if she's registered and either pays Class 2 NI or has an Exemption Certificate then she'll qualify for Maternity Allowance (if she ever needs it) whereas she wouldn't be eligible if unregistered. She'd be ineligible for other benefits too if he she had no 'official' relevant earnings.

That's the 'official' advice. Having said all that, you'll probably get away with not registering, in the circumstances.

T.C.

Thanks. She is a 50 year old grandmother with rental income only.