SELF ASSESSMENT TAX RETURNS

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Our personal tax services manage the preparation and filing of your Self Assessment tax return. We declare your income, claim your allowances, and ensure you receive the reliefs that you are entitled to. We also provide assistance in determining whether you should register for Self Assessment.

You normally only need to register once by the 5th of October following the end of the tax year in which the income or gains first arose. For example, you must register on or before 5th of October 2024 if you have income or gains to report about the 2023/24 tax year (6 April 2023 to 5 April 2024).

WHAT IS SELF ASSESSMENT?

Self Assessment is a system through which individuals, self-employed individuals, and certain businesses report their income and capital gains to HMRC for the purpose of calculating and paying the correct amount of income tax and capital gains tax. The process involves submitting a tax return each year, detailing various types of income, expenses, deductions, and allowances.

THE TAX YEAR

The tax year, also known as the fiscal year or financial year, runs from 6th of April one year to 5th of April of the following year. 

WHO MUST SEND A TAX RETURN?

You will typically need to send a Self Assessment tax return if any of the following situations apply to you:

- You are self-employed (a sole trader) and your earnings exceed the trading allowance;

- You are a partner in a business partnership;

- You hold a role as a minister of religion;

- You are a trustee or the executor of an estate;

- You are a company director with income not subject to PAYE taxation.

Alternatively, if you have any other untaxed income, such as:

- Rental income from property;

- Tips and commissions;

- Income from savings, investments, and dividends;

- Foreign income, regardless of your UK residency.

You will normally not need to send a personal tax return if your only income is from wages or pension. However, you will need to complete one if you receive other untaxed income where the tax due cannot be collected via your PAYE coding notice. In the meantime, you can choose to fill in a tax return:

- To claim some Income Tax relief; and/or

- To prove you are self-employed.

PAYING YOUR TAX BILL

You will usually need to make two payments (twice a year) on the account each year:

- 31st of January (balancing payment) for any tax you owe for the previous tax year and your first payment on account; and

- 31st of July for your second payment on account.

THE DEADLINE

Ensure that you make your payment to HMRC before the deadline. If you are required to submit a tax return and you miss the submission deadline, you will incur a penalty. In case you owe Self Assessment tax and fail to pay your bill on time, interest will be charged from the due date of your payment.

PERSONAL TAX SERVICE & SELF ASSESSMENT

If you are already registered and are required to submit a tax return, we can manage the process of preparing and filing it for you. It is important to note that the deadline for online submission of 2022/23 tax returns was 31st January 2024. Alternatively, you had the option to send a paper tax return by 31st October 2023 and pay your tax bill by 31st January 2024.

GET HELP WITH TAX

We are a London-based accounting firm helping business owners save time and money while complying with rules and regulations. At Xcountant® we use our experience along with advanced technologies to help you obtain personalised reports. The reports will provide you with the insight you need to further your business. Join Xcountant® now!