Self Assessment involves completing a tax return each year.
The return captures your income and capital gains (profits on the sale of certain assets) and claim tax allowances or reliefs.
Not everyone needs to complete a tax return. If your tax affairs are straightforward you may already pay all of the tax due on your earnings or pensions through your tax code.
But you may need to complete a tax return if you have more complicated tax affairs, even if you already pay tax through your tax code.
Do you need to complete a tax return?
HM Revenue & Customs (HMRC) will contact you in April or May, if you need to fill in a tax return.
If HMRC asks you to complete a tax return but you think you don’t need to, then you need to let them know as soon as you can. You’ll have to pay a penalty if you forget and don’t send your tax return in.
Most contractors will be required to complete a return, for example if any of the following applies:
AccountsNet complete clients return’s primarily from transactions already in the portal. Supplementary to that, our online portal collects information on gains or losses outwith the limited company, such as property, or investment income.
We will then complete the return and send you a draft copy for approval, prior to online filing with HMRC.
Tax returns must be received by HMRC by 31st January for the previous tax year.
As a result of the new penalty system, tax returns submitted immediately after this date can expect to pay a £100 fine. Then, a daily penalty, which increases at the rate of £10, is charged and capped at £900 (at three months). A further penalty which is the higher of £300 or 5% of tax due is charged after the three-month period and a further minimum of £300 is charged after a six-month period.
AccountsNet will contact you in September to ensure that there is plenty of time to complete our internal portal (if there is any income outwith that of your limited company) and prepare and submit the return online.
Many clients with reasonably straightforward financial affairs, opt to complete the return themselves, but if you do wish us to prepare and submit your self-assessment return on your behalf.
The fee for this service is £70+VAT for a standard return including employment income, bank interest, and dividends. If you have other income that needs to be included the fee will be quoted on an individual basis.
Tax laws are constantly revisited, and we work alongside our clients throughout the tax year to make sure they are claiming for all eligible deductions, which will reduce the amount of tax that they need to pay.