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What’s the SA107 Form and How to Use It?


If you’re declaring income obtained from a trust, settlement, or an estate of someone who has passed away, then you must complete an SA107 form to report this. You will use it as a supplement to your primary SA100 Self Assessment form or as part of your tax return if you file using HMRC’s online service or an online accountant.

HMRC closely monitors this type of income because individuals commonly commit tax fraud in the UK by under-reporting or omitting it on their tax returns. Failing to properly report income gained from the estate of a deceased person, a trust, or a settlement can result in severe penalties. Therefore, individuals must be transparent and declare everything they need to by using the SA107 form.

Do I Need to File an SA107?

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You need to file an SA107 (or provide the same information for the same declarations if you file your tax return online) for any of the following forms of income:

  • Beneficiary of a Trust/Settlement: You must file if you received or were entitled to income, excluding income from bare trusts.
  • Settlor Contributions: It’s necessary if you’ve contributed money or assets to a trust or settlement.
  • Income from Deceased Estates: You are required to file if you’ve received income from an estate of someone who has passed away.
  • Earnings from Settlor-Interested Trusts: This applies if you’re taxable on income arising to trustees where you, as a settlor, have an interest.
  • Income to Minor Children: It’s essential if your minor children receive income from property you’ve placed in a settlement, and you’re taxable on this income.

How to File an SA107 Form

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If you submit your Self Assessment using a paper form, you have the option to download and print the SA107 form. However, if you complete your Self Assessment online, you won’t require the SA107 form. Instead, you will locate a designated section for reporting this type of income while you complete your online tax return. Nevertheless, HMRC’s online service currently does not support this feature; therefore, it is necessary to utilize approved third-party accounting software to attach an SA107 to your online tax return. This method comes highly recommended, as it provides an extended filing deadline and is significantly quicker and more convenient.

Understanding how to use the SA107 form is easiest if we split the process into two parts, with instructions for both completing and submitting/filing the form.

Filling in the SA107 form

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The paper form consists of 2 pages and five main sections, divided into different sub-sections. You can view, read, and download the form from HMRC’s webpage. There are also several ‘help-sheets’ available.

Completing the form itself is quite straightforward; answer each question of the 24 boxes (boxes 20 & 21 are not in use). However, understanding the terminology of the form can be confusing, so it’s essential to read the ‘Trust ect’ notes to answer the relevant questions correctly. For example, if you’re a beneficiary of a trust declaring trust income, you may need to refer to the form ‘R185 (Trust Income),’ a form a trustee used to inform you about your income payments or entitlement from the trust.

Do not confuse this R185 version with the R185 (Settlor) form, which trustees use to inform settlors about trust income. You might need to establish if you’re a ‘settlor chargeable on another person’s income.’ If it all seems confusing, that’s why we strongly advise using an accountant for your SA107 form filing.

Submitting the SA107 form

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If you file a paper version of the form, you need to submit it by post, attached to your SA100 tax return form at:

(If you live inside the UK) Self Assessment HM Revenue and Customs BX9 1AS

(In case you live outside the UK) HM Revenue and Customs Benton Park View Newcastle Upon Tyne NE98 1ZZ United Kingdom

The submission deadline is 31 October for paper returns and 31st January for online returns (which must be done via a 3rd party software).

Tips for completing the SA107 Form

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As this is such an important tax reporting task to get right, we should mention a couple of tips that can help you:

  1. Gather all the information and documents you need well in advance.
  2. Study and understand the niche vocabulary HMRC uses by reading the form and looking up the terms.
  3. Double-check your figures and calculations.

Following these tips will ensure that you are as prepared as possible to complete and submit the form smoothly.

Trust in the Form

In summary, the SA107 form is crucial for declaring income from trusts, settlements, or estates of deceased individuals. It’s essential for ensuring transparency with HMRC and avoiding severe penalties for under-reporting. Whether filing online or via paper, understanding the form’s specifics is key. For ease and accuracy, consider professional accounting services like Count’s, which simplify the process and offer expert guidance, ensuring compliance and avoiding costly errors.

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