Self-Assesment Tax Returns At Our Ipswich Accountancy
What is a Self-Assessment Tax Return?
If you earn a salary, or have earned one in the past, you will likely be familiar with the concept of HM Revenue and Customs (HMRC) automatically calculating and collecting the necessary income tax straight from your wages.
However, for some people, this won’t be the case. Thus, a self-assessment tax return is a declaration of your taxable income to HMRC, allowing them to accurately calculate and collect your income tax.
What can we do for you?
You don’t have to fill out your self-assessment tax return on your own – HMRC allows you to appoint someone to fill in and submit your tax return, so that person could be a friend, relative, or accountant.
With near-constant changes to legislation and technical jargon, our tax advisors can take all of this off your plate, giving you the peace of mind of knowing that your tax return will be accurate, submitted on time, and fully compliant with HMRC regulations.
Who needs to file a Self-Assessment Tax Return?
Self-employed or sole trader
Everyone who is self-employed as a sole trader must file a self-assessment tax return if they earn over £1,000 per year. This is the most common instance of when someone might need to file such a document.
However, there are also some other conditional reasons why one might need to file a self-assessment tax return, which are detailed below.
If your claim back for work expenses totals over £2,500 in a tax year, you must report this to HMRC in a tax return. This includes things such as compensated travel, money for accommodation, mileage claims, and so on.
Whether you are a UK resident or a non-resident, it is important to bear in mind that all landlords of UK properties will typically be required to file a self-assessment tax return, declaring the total rental income.
It does not matter whether you are making a profit or a loss, you must still submit a tax return. However, in some circumstances, you might be able to claim this tax back as a rebate, on which we can advise when the situation arises.
If you live in the UK and your income comes from abroad, you still must declare your income to HMRC through a self-assessment tax return.
Non-resident with UK income
Similarly, if you do not reside in the UK but your income comes from a UK business, you must fill out a self-assessment tax return.
Earnings outside of salary
Other reasons why one might be obliged to file a self-assessment tax return include if you receive any additional income that isn’t included in your annual salary. This includes things such as interest earnings from savings, investments, and dividends, plus any tips and commission that you have received.
When is the deadline of the Self-Assessment Tax Return?
The deadline for self-assessment tax returns is slightly different in every tax year, meaning that the dates may be different for the new tax year. However, to give you a rough idea, we will explain the deadlines for the 2020/2021 tax year.
For self-assessment tax returns concerning earnings in the 20/21 tax year, the deadline for registering with HMRC was 5th October 2021.
The deadline for filing tax returns was midnight on 31st October 2021 for paper tax returns, or midnight on 31st January 2022 for online tax returns. Some people were also permitted to submit online tax returns up to 28th February 2022 without receiving any penalties due to COVID-19 disruptions.
Then, all tax was expected to be paid to HMRC by midnight on 31st January 2022 (or the given individual could enter into a payment plan before 1st April 2022 if they met certain criteria).
There is also typically the option to make advance payments towards the tax you may owe in the following year on 31st July.
What happens if you are late with the submission of your Tax Return?
If you are late to submit your self-assessment tax return, you will typically be liable to pay a monetary penalty to HMRC. If your tax return or your payment is up to three months late, you will face a fine of £100. The price will increase the later you are.
However, you can appeal your penalty if you have what HMRC calls a “reasonable excuse”. This includes things like serious illness, bereavement, technical difficulties, natural disasters, and disabilities.
Not quite what you’re looking for? We can also help you with VAT returns.
Why choose ST Accountancy for your Self-Assessment Tax Return?
ST Accountancy has the knowledge, expertise, experience, and technology to accurately and efficiently take care of your tax returns in Ipswich. Not only will we make this process smooth, straightforward, and stress-free, but we can also be on hand to offer tailored tax advice to you at all times.
If you’re looking for a tax accountant in Ipswich, we’re here to help!
your questions answered
Can I File My Own Tax Return?
Self Assessment Deadline
What our clients say
The service I have received has been nothing short of brilliant. From my initial meeting through to my monthly management reports the information that I have received has been invaluable for my business.
ST Accountancy take out the accountancy jargon and provide clear advice which helps me understand the requirements from HMRC and supports with my business planning.
I met with Sean to discuss his services and my company and he talked me through all the options and was so helpful. He wasn't trying to up-sell, only wanted to help for what I needed and is always on the other end of the phone/email if I need him.
They are very friendly with a professional “can do” attitude - Really couldn’t recommend them high enough.”