Self-Assessment

From what we have learned, tax returns are never simple or easy. It can be hard to handle if you are a busy person who works for themselves. Luckily, the experts at Z B Accountants are here to help you.

We are here to help you get your tax return ready and submit it using authorized software approved by the government as required by Making Tax Digital. We will talk to HMRC for you and make sure your tax return is sent in correctly and on time. We will figure out how much tax you need to pay and when it is due.

While we prioritize following the rules, we also want to help you save money by figuring out your business expenses and any tax breaks so that you don’t end up paying excessive taxes.

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

What is a self-assessment tax return?

The yearly process of reporting self-employed income to HMRC and figuring out an individual’s income tax due is known as the Self-Assessment tax return (SAR). Whether serving as a Sole Trader, a Business Partner, or a Director of a Limited Company, all self-employed individuals in the UK are obliged to file a Self-Assessment Tax return.

When must you register for self-assessment?

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

After you sign up, you need to keep sending a tax form every year, even if you didn’t make any money. You can only stop evaluating yourself with permission from HMRC.

What records do I need to keep?

Your tax obligations become much simpler and achievable with year-round recordkeeping. This requires careful tracking of customer’s income and expenses.

Expenses: Since you can deduct some business expenses from your tax bill, such as energy bills, membership fees, and products utilized for your business, it’s imperative that you keep accurate records of all of your expenditures.

Income: It is imperative that you gather all of your income and maintain records of it, such as bank statements, sales invoices, and receipts.

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

Together with the money you receive from the sales of your goods and services, the following sources of income must also be included on your yearly tax returns because they are also regarded as “untaxed income,” or money that isn’t taxed at source:

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:
Following the tax-free allowance, all dividends from a limited business that are liable to dividend tax must be reported.

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

Capital Gains:

If you sell or otherwise dispose of assets like real estate, vehicles, or equipment, you have to pay capital gains tax on any gains over the Annual Exempt Amount and report any earnings in your self-assessment return.

One should also consider the advantage to the child. You may be required to repay all or part of the child benefits you received through an income tax charge if you or your spouse earn more than a certain amount. This will be considered during this procedure.

What tax reliefs are there?

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

Pension contributions:
By lowering your taxable income, donations to a pension plan may lessen your tax obligation.

Capital Allowances:
Tax relief provided by yearly investment allowances or writing-down allowances on the cost of acquiring or upgrading corporate assets like machinery, automobiles, or other equipment.

Research and Development (R&D) Relief:
You may be able to claim an extra tax deduction for acceptable R&D expenses if your company is involved in qualifying R&D activities. Speak with an experienced tax accountant like Z B Accountants because it’s easy to miss out on advantageous tax reliefs.

When are the deadlines for self-assessment tax returns?

The deadline for submitting your self-assessment tax return is always the same every year. You must finish filling out your personal tax forms by January 31st. These forms cover the year’s taxes up until April 5th of the previous year.

You need to pay your tax bill by January 31st. You can pay it all at once or in two parts, one on January 31st and the other on July 31st. Whether you will need to make partial payments over a period of time depends on the amount of money you owe in taxes. Your accountant can give you advice on this matter.

Is there a penalty for non-compliance?

Depending on the severity and circumstances of the non-compliance, there are penalties for filing your tax return late, incorrectly, or missing the payment deadline, including fines, interest charges, and possible legal action. It is a good idea to save your tax money in a different bank account if you are a self-employed person so that you can pay your tax bill when it is due. It is advisable to work with an accountant like Z B Accountants to handle your tax return so you can stay compliant and avoid penalties.

Our self-assessment tax return service

We will be assisting you throughout the self-assessment process.

Being your Accountant, our responsibilities include:

• Determine your tax obligation
• Finish filing your tax return.
• Following your confirmation, file your tax return online.
• Provide guidance regarding the appropriate payment amount and due date
• Handle any ensuing tax investigations
• Assist you in avoiding penalties or fighting them if they do occur.