The Self-Assessment Tax Return is the only way to pay your taxes on time and avoid any penalties. It’s also a great way to get money back from the government if you’ve overpaid in previous years.
What is Self-Assessment Tax Return?
Self-assessment tax returns are the annual tax returns that you need to file if you are self-employed. If you don’t, HMRC will send out a warning letter before they make an audit request Self-employed people must submit their return every year by 31st January after the end of their financial year (5th April for companies). The due date can change depending on when in January your business was registered with Companies House or any other relevant organisations like VAT.
If you have been working for someone else during the year but have also been doing some work for yourself (for example as a consultant), then HMRC expects this income to be included in your Self Assessment Return too.
Why do you need to file a Self Assessment Tax Return?
Most people who are resident in the UK for tax purposes need to file a Self Assessment Tax Return every year. This is because income, gains and losses from property dealings, employment income and various other sources must be declared to HM Revenue & Customs (HMRC). The tax due on these declarations is then paid by 31 January following the end of your financial year. If you have claimed any reliefs or expenses that reduce your liability to pay tax, you may be able to claim a repayment from HMRC. This could involve making sure that you’ve used the correct code when submitting your return or putting money aside for payment at a later date.
What are the benefits of filing a Self Assessment Tax Return?
If you believe that you may be eligible for a rebate, then filing a self-assessment tax return can be an effective way to get this money back. The benefits of filing include:
- Receiving a refund of overpaid tax
- Avoiding paying interest on underpaid tax
- Getting help and guidance on how much you should pay in tax each year based on your income and expenditure levels
If you have any questions about the process or would like advice on whether it would be beneficial for you to file, please contact our team today.
When do you need to file a Self Assessment Tax Return?
There are four deadlines for filing a Self Assessment Tax Return:
- 31 January – This is the deadline to submit your first-year Self Assessment Tax Return if you’re starting to trade in the current year.
- 31 May – This is the deadline to submit your second-year Self Assessment Tax Return if you’re continuing to trade in the current year of assessment.
- 31 August – This is the deadline for submitting your third-year Self Assessment Tax Return (SA100) if you started trading in either of these years.
- 31 October – The final date for submitting your fourth-year (SA100) self assessment return if you started trading in either 2015 or 2016.
How to complete an Online Self Assessment Tax Return?
There are a number of different ways in which you can complete your Self Assessment Tax Return. You can either do it yourself by using the guidance that we have provided on this page, or you can take advantage of the services offered by third parties who will be able to help you complete the process for a fee. If you decide to go ahead and do it yourself, then there are a few steps that we would recommend:
- Be sure that you have all of the relevant information at hand before starting
- Always double-check everything before submitting it for review (this includes checking for spelling mistakes)
- If possible use an online tool such as Xero or Quickbooks.
Who can help you with your Self Assessment Tax return?
In order to make sure your tax return is accurate, it’s important that you understand what’s required. Below are some options for getting help:
- Use an accountant who specialises in self assessment tax returns. This will ensure that they know exactly what information they need and have a thorough understanding of the process involved, which will reduce the risk of making errors on your behalf.
- Use a professional online tax software package such as Xero, Quickbooks or Sage are just a few. These programs can provide step-by-step guidance on completing your return by covering everything from calculating what you owe all the way through submitting it online or via post, so there’s no need for human intervention at any point during completion if you don’t want there to be! Plus they offer 24/7 support over email just in case anything goes wrong between steps too – although we can guarantee this won’t happen because their program was designed by experts who know exactly how everything works…but just incase though
- Use another person’s expertise: While we’re not going into detail here about how this works because spoilers are bad guys!, suffice it say that anyone with even basic knowledge about taxes would probably be better off having someone else prepare their return instead than doing it themselves since some mistakes could result from simple oversight rather than malice or ill intent.
Don’t be late to file self assessment tax return!
Filing your self assessment tax return on time is important because once the deadline has passed, there will be a penalty fee and interest charged by HMRC. You can check the deadline for filing your tax return online at https://www.gov.uk/self-assessment-tax-returns/overview
Self Assessment Tax return is a very important thing to file, especially if you are an individual who has some income from your job or business. This will help you save money in the future, so make sure that you file your Self Assessment Tax return on time! If you need some help with this process then please contact us through our website where we will be happy to assist you with any questions or concerns about filing online self assessment tax return for free.