If you have income which is not already subject to tax or reported to HMRC in some form then the likelihood is that you would be expected to register for self-assessment and complete a tax return on an annual basis to report this income to HMRC. This could be in the following capacity, but not limited to; Self Employed Individuals/Sole Traders, Partnerships and their Partners, Directors of Limited Companies, and in the following circumstances;
-Investment/Savings/Dividend Income of £10k or more (untaxed) in any one year
-You or your partner’s income was £50,000 or higher, whilst you were in receipt of child benefit
-Rental Income from a property – the rules on property related tax allowable expenses have changed considerably in recent years, please contact us to ensure you are up to date with this legislation.
-If you had income from abroad
-Your taxable income was more than £100,000
-If you were employed and have employment related expenses more than £2,500, those with less than this to claim can do so via an online HMRC form P87
The registration process can be completed online via the HMRC Website, or we can complete this for you. You will then be supplied with a Unique Tax Reference, this is your identifier for self-employment, and this is what you require to set up your personal tax account. As HMRC intend on making tax digital (MTD2020) by 2020, we encourage all our clients to register for this free service, as it should be able to give you a real time update of your earnings throughout the year and this is easily accessible via the HMRC Smartphone App as well as online.
Our self-assessment service includes;
-Initial Consultation – Free of Charge
-Advising you on the records we require to complete your Self Assessment
-Collating, sorting, organising your paperwork for processing
-Preparing and Income and Expenditure Summary
-Preparing Financial Statement and Calculating Tax Due
-Completing Self Assessment
-Preparing Payment Slip to advise of any tax liabilities/refunds due
-Summary Meeting to Review and Sign off or Electronic Signature available remotely at clients’ request.
The deadline for self-assessment falls on the 31st January each year, and an automatic £100 penalty applied for those who are late, this can increase to £1,600 as the maximum penalty for any one tax year. Get in touch if you need advice on your Self Assessment responsibilities and how to minimise your tax liability.