As a self-employed individual in the UK, you are required to complete a self-assessment tax return each year. This is an important part of your financial obligations and it is important to understand the process and how to correctly complete your tax return. This guide will provide you with a simple overview of the self-assessment process and how to complete your tax return.
What is Self-Assessment?
Self-assessment is a system used by HM Revenue & Customs (HMRC) to collect income tax from individuals who are self-employed or have other sources of income such as rental income or investments. It requires individuals to submit an annual tax return which details their income, expenses, capital gains and any other relevant information.
When Do I Need To Submit My Tax Return?
The deadline for submitting your tax return is 31st January each year. If you fail to submit your tax return on time, you may be liable for penalties and interest charges. It is therefore important that you plan ahead and ensure that your tax return is submitted on time. Here is a vat calculator.
What Information Do I Need To Include?
Your self-assessment tax return will require you to provide detailed information about your income, expenses, capital gains and any other relevant information. You will need to provide details such as:
Your name, address and National Insurance number;
Details of any employment or business activities;
Summary of any rental income;
Details of any investments;
Details of any capital gains;
Any other relevant information such as charitable donations or foreign income.
How Do I Submit My Tax Return?
You can submit your self-assessment tax return online via HMRC’s website or through an accountant if you prefer. The online service allows you to submit your tax return quickly and easily. Therefore avoiding having to fill out paper forms or send them in the post. You will need an activation code which can be obtained from HMRC’s website before you can use the online service.
What Happens After I Submit My Tax Return?
Once your tax return has been submitted, HMRC will review it and calculate how much Income Tax and National Insurance contributions (NICs) are due from you for the year in question. You will then receive a statement showing how much Income Tax and NICs are due from you along with payment instructions on how these should be paid by the due date (usually 31st January).
Conclusion
Completing a self-assessment tax return can seem daunting at first but with some preparation it can be relatively straightforward. By understanding what information needs to be included in the form and following the instructions provided by HMRC, it should be possible for most people to complete their own self-assessment without too much difficulty.
You can find more details about how to complete your self assessment tax return by clicking this link https://www.gov.uk/self-assessment-tax-returns
If however, you want the hassle taken away and want to make sure your tax return is filed correctly, on time and ensuring you minimising your tax liability where possible then we can assist in the full process as we deal with filing hundreds of personal tax returns each year.