The final date for you to complete and submit your self-assessment tax return is coming up fast. Should you miss the January 31st deadline, an instant penalty of £100 will be issued.
To avoid unnecessary charges like this, take some time to understand the tax return and how to complete it. If necessary, seek advice from a complete accounting service.
Should you complete a tax return?
There are set criteria for people who need to be in the self-assessment system. If you are self-employed, receive expenses above a certain amount, earn more than £100,000 and meet some other criteria, you will need to complete a tax return annually. Even if you don’t fulfil the criteria, you can request a tax return to complete if you like, but will face a penalty charge if it isn’t completed and submitted in a timely manner. If you believe that you don’t fulfil any of the criteria, ask to be taken out of the system.
What do I include in the tax return?
You should include all your income, allowances and expenses on your tax return. This includes income from employment, any untaxed bank interest, self-employment earnings and any other income that hasn’t been taxed. If you wish to claim allowances or allowable expenses, they must be included on the tax return. If you are unsure about any income, check with HMRC to see if it needs to be entered on the form.
When you register for self-assessment, you will be asked which pages you will need to complete. You can request a page for employment, one for self employment, income from property and many more pages. Make sure you request the correct pages well ahead of the filing deadline.
Can I pay my tax bill through my tax code?
If your tax bill is below £3,000, or you owe a balance of less than this amount, you may be able to include it in your tax code so that it can be collected through the next tax year. You must earn sufficient employment income to ensure that you pay sufficient tax, and your online tax return must be submitted before December 30th.
Unfortunately, it’s easy to make errors while completing your self-assessment tax return, all of which could result in a penalty charge. To avoid this situation, contact us to make an appointment for an informal chat about tax returns.