Have you been working real hard to make your business grow in leaps and bounds this year? Have you seen positive results for your efforts?
There are many like you who struggle really hard to make their businesses grow and prosper. Some, who are smart, also set up secondary modes of income so that if their primary businesses fail to prosper, they will have another channel through which they can get regular incomes. However, it is important to make the government aware of such secondary channels of income. This will make things much simpler for you.
What Is Self-Assessment?
When you talk about self-assessment, it is basically short for self-assessment tax return, which is a type of form business owners have to send to HMRC every year stating the total income they made that year and the various sources of the incomes. You may say that self-assessment mainly refers to the fact that it is the job of an individual or a company to determine how much tax he is liable to pay. It will not be wrong to say that the self-assessment tax return is merely known as tax return in general terms.
Most of the income earned during a fiscal year is covered by the tax return and it is important for you to file the same with HMRC. If you decide to file it online, then you need to do so by the 31st of January of the year following the fiscal year in question according to finance-equation.co.uk. On the other hand, if you do not wish to file it online, the tax return should be with the said department by the 31st of October of the year following the fiscal year.
Do You Need to Fill in a Self-Assessment Tax Return?
The answer to this question is dependent upon several factors. You will have to file a self-assessment tax return if you fulfil one or more of such factors. Some of these factors are listed below.
- Your annual income is above a set limit.
- You earned more than a specified amount in the category of untaxed income, such as commission or tips.
- You earned more than the set limit from your personal investments.
- Either of you or your partner’s income has been more than a set limit and if you claim child benefit.
- Either you have earned some income from abroad or you actually live abroad and have a source of income in your home country.
You may also file for a self-assessment tax return if you wish to make voluntary contributions towards any insurance plan in order to help you qualify for any benefits like the State Pension. However, you do not have to file for a return if you are an employee who has already paid tax through the Pay as You Earn system, unless you have earned more than a specified amount.
How to Register Yourself?
If you have never submitted a self-assessment tax return in your life, then you need to register yourself for the process. Whether you are self-employed or not, there are several ways for you to get yourself registered for the self-assessment tax return system.
After you have successfully registered yourself, you receive a reference code that will be unique for you. If you wish to submit a self-assessment, form via the online method, you will have to set up your own Government Gateway account. In order to do this, you will have to follow the instructions that you will get with the unique reference code.
After successful setting up of the account, you will receive an activation code via post. You will need this code to complete the set up. If you fail to do so, your Gateway account will not be complete, and you will not be able to file the self-assessment tax return online.
On the other hand, if you have already submitted your self-assessment tax return earlier in previous years, you will simply require the unique code to register and set up your account. It is always a good habit to try and access your Gateway account before you try and submit your self-assessment tax return. This will not just save your time but also ensure that you are able to login without any technical glitch.
Type of Information That Goes on Your Self-Assessment Tax Return
Sometimes it may so happen that the accounting year of a sole trader may not match with the tax year. In such situations, you will receive a report stating your tax return amount for the total earnings for that specific accounting year that completed before the tax year. There are some definite rules that you need to follow for the early and final years of the life of a business.
It is needless to say that there are some modes of income that are tax free. A good example would include any interest that gets paid on money that is in an ISA and is thus, not at all reported on the tax return. There are certain tax breaks that are also handled through the tax return system.
What About the Self-Assessment Tax Return Deadline?
When you file a self-assessment tax return for the relevant tax years, and not the calendar years, you need to do so in arrears. For instance, if you wish to file for the 2019/20 tax year, you will have to
- You need to register for the self-assessment by a given date in case you have never submitted a tax return earlier in life.
- You also need to submit your tax return within a given time limit in case you decide to file a paper tax return.
- However, there will be a different deadline if you intend on filing your tax return online.
- You also need to pay the tax that you owe by the given deadline to avoid any type of penalties.
Self-Assessment Tax Return Accountant
It is true that doing all the calculations on your own may not be a cup of tea for every individual. If you do not have any knowledge about commerce or if you are pathetic in math, doing such great calculations pertaining to taxes and tax returns will simply drain your energy and mental peace. Thus, the best option is to hire a self-assessment tax return accountant. This professional will be able to help you with all the calculations and also guide you with the proper process of filing a self-assessment tax return. If needed he can also do the same on your behalf. This will make things much simpler for you.
Self-assessment tax return accountants are well-qualified in matters of money and can easily deal with such matters for you. Hiring the right professional will not just help you save time; it will also help you get the necessary things done the right way. It is always important that you hire one of the best and highly experienced professionals in this field. You may compare different professionals based on their years of experience and rates so that you get the best possible help. Once you manage to find the right accountant to help you with filing the self-assessment tax return, things will get much smoother for you in the long run.
