Year-end accounts & Corporation Tax

Based on what we know, a tax return is never simple or easy. It is a difficult process that can be hard to handle if you are a busy person who works for yourself. Luckily, the expert team at Z B Accountants is there to help you.

We are here to help you with your taxes using special software that is approved by the government. This will make sure that your taxes follow the rules of Making Tax Digital. We will talk to HMRC for you and make sure that your tax return is filed correctly and on time. We will also figure out how much money you owe in taxes and tell you when and how to pay it.

We will make sure you are not paying too much tax by calculating your business expenses and other available reliefs.

Get in touch with us today if you have any questions or want to schedule a free meeting. We are excited to hear from you.

What is a self-assessment tax return?

Self-assessment tax returns are an annual requirement for self-employed individuals to report their self-employment earnings to HMRC and calculate an individual’s Income Tax bill. All self-employed individuals in the United Kingdom are required to self-assess their tax returns, regardless of whether they are a director of a Limited Company Director, a business partner or a sole trader.

When must you register for self-assessment?

You must sign up for self-assessment when you make more than £1,000 in a year. Once you make more money than the amount you are allowed to earn without paying taxes, you have to pay taxes based on how much you earn.

After you sign up, you have to submit a tax form every year, even if you haven’t earned any money. You can only stop evaluating yourself with permission from HMRC.

What records do I need to keep?

The procedure of managing your tax issues is made much simpler by year-round recordkeeping. This necessitates at the very least keeping track of all of your earnings and expenses.

Expenses: It’s critical to maintain precise records of all business expenses since you can deduct some of them from your tax bill, including energy costs, subscription fees, and items used for your company.

Income: It’s crucial to compile your income from all sources, keeping track of it with documents like bank statements, sales invoices, and receipts.

What income do I need to declare on my self-assessment tax return?

The following sources of income must also be stated on your annual tax returns since they are also considered “untaxed income,” or money that isn’t taxed at source, along with the revenue from the sales of your goods and services:

Rental income: Every sort of rental income, including that from homes, businesses, vacation rentals, and other real estate, should be disclosed on a person’s tax return.

Dividends: Any dividends received from a limited business that are subject to dividend tax after the tax-free allowance must be reported.

Savings and investments: You are required to disclose any interest gained on your savings, bonds, or other assets.

Capital Gains: If you made money by selling or getting rid of certain things like property, vehicles, or equipment, you need to tell the government about it when you fill out your tax forms. You also have to pay a tax called Capital Gains tax on any profit that is more than a certain amount each year.

It is important to think about child benefit. If you or your partner earn above a certain amount, you might have to pay back some or all of the child benefits you received through your income taxes. This will be considered when you do your self-assessment.

What tax reliefs are there?

There may be tax relief options available, depending on your circumstances, including:

Contributions to pensions:
Your taxable income may be decreased by contributions made to a pension plan, lowering your tax obligation.

Capital Allowances:
Tax relief provided through annual investment allowances or writing-down allowances on the cost of purchasing or improving business assets like machinery, vehicles, or other equipment.

Research and Development (R&D) Relief:
If your company engages in R&D activities that are eligible, you may be able to claim an enhanced tax deduction for eligible R&D expenses. Because it’s simple to overlook beneficial tax reliefs, it’s crucial to enlist the help of a seasoned tax accountant like Z B Accountants.

When are the deadlines for self-assessment tax returns?

The deadline for self-assessing tax returns is the same each year. You have until 31st January to finish your personal tax returns, which cover the 12 months until 5th April of last tax year. Your tax bill also needs to be paid by 31st January – either in full or split into two payments on 31st Jan and 31st July – depending on how much tax you own; your accountant can tell you how much to pay.

Is there a penalty for non-compliance?

If you don’t file your taxes on time, incorrectly, or if you don’t pay on time, you could face penalties like a fine, interest, or even legal action. It all depends on the severity of your failure and the situation. If you’re a self-employed person, it’s best to keep your tax bills in a different bank account so you can pay them when they’re due. That way, you don’t have to worry about penalties and you can stay compliant. If you need help with your taxes, Z B Accountants is the way to go.

Our self-assessment tax return service

We will work with you every step of the way, no matter what your self-assessment requirements are.

 In our capacity as your accountant, we will:

• Calculate your tax liability;
• Complete your tax return;
• File it electronically after receiving your approval;
• Advise you on the amount that should be paid and the deadlines for payment;
• Handle any tax investigations that come up;
• Assist you in avoiding penalties or fighting them if they do.