Are you declaring income and need to use an SA107? Here’s what you need to know 

An SA107 form is a supplementary tax used to report and declare income obtained from a trust, settlement, or an estate of someone who has passed away. 

This form is also used in conjunction with your primary SA100 Self-Assessment form. 

You can submit your SA107 alongside your SA100. 

Or, if you are using HMRC’s online service, this form will become part of your tax return. 

Reporting income gained from the estate of someone who has died, income gained from a trust, or income gained from a settlement, means you must remain compliant with legislation. 

Failure to do so can result in significant financial penalties. 

I’ve just obtained an income from a settlement – when will I need to use an SA107? 

You will need to file an SA107 if you have any of the following income: 

• Beneficiary of a trust/settlement – this means you must file if you have received or are entitled to income (this excludes income from bare trusts) 
• Settlor contributions – this is necessary if you have contributed money or assets to a trust or settlement 
• Income from deceased estates – if you have received income from an estate of someone who has passed away 
• Income from settlor-interested trusts – applicable if you are taxable on income arising to trustees where you, as a settlor, have an interest 
• Income to minor children – this is essential if your minor children receive income from a property you have placed in settlement, and you are taxable on this income. 

Once you have received this income (either from a trust, a settlement, or an estate), you need to ensure you understand the ins and outs of the SA107 form before you submit your Self-Assessment tax return to remain compliant and up-to-date with legislation set out by HMRC. 

How can I complete the SA107 form? 

If you file your Self-Assessment via paper, you will need to download the form and fill it out manually. 

If you file your Self-Assessment online, you won’t need to fill out and file an SA107 form. 

However, it is not possible currently to do this using HMRC’s online service – you will have to use an approved third-party accounting software to attach an SA107 to your tax return online. 

Using this method means you will be able to get an extended filing deadline, allowing you to correctly file your tax returns regarding your newly obtained income. 

It is crucial you report any tax correctly, using our advice to keep you on track. 

Filing and filling in an SA107 form might sound confusing but that’s because it is – the help of our experts will support you as you navigate through the complexities of an SA107 form. 

If you would like further information about an SA107 form, get in touch with us today.