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Self-Assessment Tax Return Services
Self-Assessment Tax Return Services
What is Self-assessment tax return?
Self-employed people usually have multiple sources of income as opposed to people who are employed or getting pensions. Employment income is automatically taxed by a system known as PAYE (Pay as you earn).
But if you have more than one source of income, then you are liable to pay tax on all incomes subject to the taxes. Therefore, completion of a self-assessment tax return is required. This is a difficult and complicated process which requires the necessary skills and expertise. That is why, you should hire an expert self-assessment tax return accountant.
While preparing your self-assessment tax return it is important to account for all income and claims for any reliefs available. The return must be submitted at the end of the tax year which is 5th April. HMRC will determine what you need to pay once your self-assessment return has been submitted.
Self-assessment tax returns:
Other income that needs preparation of the tax return include Capital gains, foreign income, rental income, and savings income.
- Capital Gains: It is the increase in the value of capital assets. You must pay tax on the sale of any property within 30 days.
- Foreign income: Foreign income includes the income you receive for your services or goods in another country. Your foreign income and UK dividends are more than £2,000 then you are liable to pay tax.
- Rental Income: It is the payment that you are receiving for occupation or any use of the property. If your income is between £2,500 to £9,999 then you are liable to pay tax on the rental income.
- Savings Income: If your income is more than £5,000 then you are liable to pay tax on it.
Why self-assessment tax return is important?
Submitting self-assessment tax return is important because failure to submit will result in penalties of £1,800 by HMRC. There may be additional penalties you would have to bear if you do not make the returns on time. If you have received child benefit in the last two years, or if you or your partner’s income was over £50,000 then you must submit the tax return.
The penalties by HMRC subject to delays are as follows:
- £100 daily penalty
- £300 increase in penalty after three months
- Adding 10% of the unpaid tax after six months
- Increase of another 10% of the unpaid tax after twelve months
Self-Assessment Tax Return Services
What is Self-assessment tax return?
Self-employed people usually have multiple sources of income as opposed to people who are employed or getting pensions. Employment income is automatically taxed by a system known as PAYE (Pay as you earn).
But if you have more than one source of income, then you are liable to pay tax on all incomes subject to the taxes. Therefore, completion of a self-assessment tax return is required. This is a difficult and complicated process which requires the necessary skills and expertise. That is why, you should hire an expert self-assessment tax return accountant.
While preparing your self-assessment tax return it is important to account for all income and claims for any reliefs available. The return must be submitted at the end of the tax year which is 5th April. HMRC will determine what you need to pay once your self-assessment return has been submitted.