About your self-assessment tax return
You can send your self-assessment tax return at any moment from the start of a new tax year on 6 April until the 31 January the following year. After this date there will be a fine of £100.00 for late tax returns and further fines issued by HMRC for your self-assessment tax return will inevitably follow up followed by daily fines.
A brief overview of self-assessment?
For lots of people, any type of cash they owe the taxman is immediately deducted from their wages through PAYE (pay as you earn) in their employment. In this case the only employees required to complete an income tax return is usually higher rate taxpayers.
For anyone who is classified or has registered self-employed. You do this through completing and submitting a self-assessment tax return online to HMRC and declaring your income and expenditure.
A self assessment tax return must be completed once a year and is issued each year in April by HMRC. The final filing date is 31st January following the 5th April issue date. Payments are made on account are made twice a year each January and July and a balancing payment is often made by taxpayer the following January
It is the responsibility of the taxpayer to calculate and pay the correct amount of tax and national insurance owing each tax year, failure to do so may result in late payment fines. HMRC should send a tax calculation providing the tax return has been filed prior to September 30th, after this date they have no legal obligation to do so.
DO I NEED TO COMPLETE A SELF ASSESSMENT TAX RETURN
Self Assessment was set up for taxpayers to declare and pay their own taxes and in the main it does not affect those taxpayers who pay either monthly or weekly through their employment. However there are some exceptions, those being the following :
Pensioners and taxpayers declaring private pension income.
Savings and financial investment income.
Employees declaring business expenditure in which their employer has not reimbursed them. Examples may be business mileage, motor expenses, accommodation whilst working away, telephone and subsistence whilst in employment outside the normal area of work.
Employees declaring benefits in kind which have not been taken into consideration within their PAYE. Example may be health benefits or a company loan.
Investment income from cypto currency.
Capital Gains income or the sale of a second residential property by an employee.
Foreign dividend or investment income.
Limited company directors should always register and complete an annual self assessment tax return as they may receive dividend income as a director/shareholder.
Sole Traders or partnerships will invariably purchase pieces of equipment, plant and machinery during and motor vehicles during the financial year. Significant tax relief is available for this and should always be declared on the income tax return.
It is very important that the correct amount of tax is paid and therefore all tax relief must be claimed for capital assets as it will significantly reduce the amount of tax payable.
Important Dates To Remember :
- 6th April – The date of the new tax year and the date in which accounts are usually prepared from for sole traders and partnership tax returns.
- 5th April – This is the final date of the tax year and the date in which accounts are usually prepared to for sole traders and partnership tax returns.
- 31st January – Is the deadline date for filing online tax returns for self employed individuals. After this date fines will incur for late filing of the tax return. This is also the date in which a first payment on account should be made for the following tax year. It is usually fifty percent of the total tax and national insurance liability of the previous tax year.
- 31st July – Is the date in which sole traders, partners and all taxpayers should make their second payment on account. It is usually fifty percent of the total liabilities of the previous tax year.
Should you require your self assessment tax return completing for only £99.00 including vat please contact firstname.lastname@example.org or telephone : 0161-457-2215
Article written by : Martin Craighan for
Date: 25th October 2023.