Tax Help

A Guide to Self-Assessment Tax Returns

Mastering Your Finances: A Guide to Self Assessment Tax Return

Introduction to self assessment tax return: Navigating the complexities of tax season can be daunting, especially when it comes to self assessment tax returns. Whether you’re a freelancer, small business owner, or self-employed professional, understanding the ins and outs of filing your self-assessment tax return is crucial for financial success. In this comprehensive guide, we’ll delve into key strategies and tips to maximize your tax return efficiency and ensure compliance with tax regulations.

Understanding Self-Assessment Tax Returns: Self-assessment tax returns are a way for individuals to report their income and calculate the amount of tax they owe to HM Revenue and Customs (HMRC). This process is particularly relevant for self-employed individuals, sole traders, partners in partnerships, and company directors who are not subject to Pay As You Earn (PAYE) tax deductions.

Key Steps for Filing Your Self-Assessment Tax Return:

  1. Gather All Relevant Documents: Before diving into your tax return, gather essential documents such as invoices, receipts, bank statements, and any other financial records related to your income and expenses.
  2. Register for Self-Assessment: If you’re new to self-assessment, ensure you register with HMRC well before the deadline to avoid penalties.
  3. Know Your Deadlines: Familiarize yourself with the deadlines for filing your tax return and paying any tax due. Missing deadlines can result in penalties and interest charges.
  4. Accurate Income Reporting: Report all sources of income accurately, including self-employment earnings, rental income, dividends, and interest.
  5. Claim Relevant Deductions and Allowances: Take advantage of allowable expenses, tax reliefs, and allowances to minimize your tax liability. Common deductions include office expenses, travel costs, and pension contributions.
  6. Use Accounting Software: Consider using accounting software or hiring an accountant to streamline the tax preparation process and ensure accuracy.
  7. Submit Your Tax Return: Once you’ve completed your tax return, submit it online through the HMRC website or via approved software.
  8. Pay Your Tax Bill: Pay any tax owed by the deadline to avoid penalties and interest charges.

Conclusion: Mastering your self-assessment tax return is a critical aspect of managing your finances effectively. By following the key steps outlined in this guide and optimizing your content for relevant keywords, you can navigate tax season with confidence and maximize your tax return efficiency. Remember to stay informed about tax regulations and seek professional advice when needed to ensure compliance and financial success.

You can find out more by visiting the HMRC website here

Ready to complete your self-assessment tax return? Click here

Tax Help

Tax Refund

Tax Refund

After completing your self-assessment tax return or rebate request, how long does it typically take to receive a tax refund from HMRC?

Normally, it takes between 1 to 3 months to receive your tax refund. While some rebate companies promise a faster turnaround, it’s important to review the terms and conditions as none of these companies have priority status with HMRC for their clients.

What might be causing your tax refund delay? There are several common reasons:

  1. Busy times of the year, like January/February and April/May, can slow down processing times.
  2. Forgetting to report additional income, like earnings from an extra job at the beginning of the year, can lead to delays.
  3. Missing bank account details can result in HMRC sending a slower paper check instead of a direct bank transfer.
  4. Any irregularities in your self-assessment return, such as unreported business income, may require HMRC to investigate before issuing a refund.
  5. Existing penalties on your account may need to be settled before a refund can be processed.

For more specific information about your refund status, it’s best to contact HMRC directly. You can reach them at 0300 200 3310, though be prepared for potential hold times. Alternatively, HMRC offers an online checker for tracking your refund status, which you can access at https://www.gov.uk/guidance/check-when-you-can-expect-a-reply-from-hmrc

Tax Help

Selling items online? Renting a property? HMRC might be updated automatically from today.

New regulations today (1st January 2023) from HMRC

If you sell items online on websites such as Ebay, Vinted, Etsy or any other online selling site, be aware from 1st January 2023 HMRC now require sites to collect and upload sales details automatically.

The implementation of data reporting also applies to overseas website who conform to the Organisation for Economic Co-operation and Development (OECD) regulations, this could affect your property rental income, both domestic and international from companies such as AirBnB. Some companies will not be required to share information until January next year (2025).

For more information, please see the original article here

Tax News

Changes to UK company law : The Economic Crime and Corporate Transparency Act 2023

The Economic Crime and Corporate Transparency Bill received Royal Assent on the 26th October 2023 and is now The Economic Crime and Corporate Transparency Act 2023.

Louise Smith the Chief Executive and Registrar of Companies celebrates the new bill becoming law and believes it will support economic growth in the UK, but also helping prevent crime and abuse of the company’s registrar. 

Companies House will now have additional powers regarding the data held on record, and the ability to verify identification for existing and new directors, significant shareholders, and those who are filing with Companies House.

It is hoped the new changes will promote more accurate data being held at Companies House and help prevent fraud and other financial harm.

These changes reflect new laws in England & Wales, but also in Scotland and Northern Ireland.

Changes to the way Companies House’s systems operate are expected to start in 2024 and should include:

  • More cross-checks of information against existing data.
  • Stringent checks on company names.
  • PO Boxes no longer allowable for registered offices.
  • All companies to register a contact email address.
  • Every year companies will need to state they only intend to operate a lawful business.
  • Public notes against companies where there may be potential issues.
  • Removal of inaccurate information from the registrar.
  • Sharing data with other government departments and law enforcement.

As Companies House fees are used to provide the service, it is expect the fees will increase to cover the additional expenses incurred.

This article is based on information publicly available online at www.gov.uk. Accessed 05/12/2023.

Tax News

Business Finance for Welsh companies

…and companies looking to move to Wales.

If you are starting a new business in Wales, looking to expand your existing business in Wales or moving your business to Wales, the Development Bank of Wales might be your first call if you are looking for funding.

Start-up loans are available up to £50,000, and you will need the following during the application process:

  • Business plan summary
  • Historic accounts (up to two years if available)
  • Two years cashflow forecast for loans over £25,000 (One year for loans up to £25,000)
  • Up-to-date management information
  • Previous three months bank statements (personal if start-up)
  • Statement of assets and liability

Expanding your business with finance of over £50,000 is available, documentation you will need is:

  • Business plan summary
  • Historic accounts (up to two years if available)
  • Monthly Integrated Forecast (two years inc. profit and loss, cash flow and balance Sheet)
  • Up-to-date management information
  • Previous three months bank statements (personal if start-up)
  • Statement of assets and liability

The Development Bank of Wales Plc is a development finance company wholly owned by the Welsh Ministers and it is neither authorised nor regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

You can find out more information on what the Development Bank of Wales can do for you on their website https://developmentbank.wales

Tax News

What does the Autumn Statement & new minimum wage mean for you?

There can’t be too many people who are not feeling the financial pinch at the moment, with mortgage interest rate increases, high fuel and energy costs, not forgetting an ever increasing shopping bill at your supermarket of choice.

The Autumn Statement has overturned nearly everything in the “Growth Plan” from earlier this year, with the government using the Autumn Statement to raise money in invest in public services. The Personal Allowance (the amount you can earn before paying income tax) will remain unchanged at £12,570 , however the highest rate of tax, the Additional Rate (45%) threshold is dropping from £150,000 to £125,140.

There is some good news (with a twist) for those paid the National Living Wage, in April 2023 it will rise to £10.42 per hour, a 9.7% increase for those 23 years of age and older. As mentioned, the Personal Allowance is not increasing, so this rise in wage will result in employees paying more tax. To illustrate what this might mean to an employee working full time 37.5 hours a week, please see the following comparison.

WeeklyCurrentlyApril 2023
Pay£356.25£390.75
Income Tax£23.00£29.80
National Insurance£13.71£17.85
Ave. Take Home Wage£319.54£343.10
Tax Help, Tax News

Self assessment HMRC tax deadline moved to February 2022, there is a catch!

HMRC allowed self-assessment returns an extra month to be submitted back in January 2021, and you may have heard through the media that HMRC have extended the deadline again in 2022? 

It’s partially true, HMRC have stated they will not be issuing penalties providing you file before the end of February (28th February 2022), however much of the news surrounding this announcement appears to be leaving out one crucial factor, it may cost you!

If you delay your self assessment tax submission past the 31st January 2022 and it’s found you do have income tax to pay, you will still be liable for interest on your tax if you delay payment until after the 31st January!

If you feel you may not be able to pay your income tax to HMRC on time this year, please do not use that as reason to delay your self-assessment return.  HMRC have had a scheme running for quite a while now called a Time To Pay arrangement, if you think you might have difficulty paying immediately, it will definitely be worth checking out.  You can apply for this scheme online without making appointments to speak with someone from HMRC, provided your tax due is less than £30,000.

https://www.tax.service.gov.uk/pay-what-you-owe-in-instalments

If you have any questions about the Time To Pay scheme, or need your self-assessment return completed fast, please do contact us today.

You can find the complete website post from HMRC by searching the business section of HMRC’s website using the link below; it was published on the 6th January 2022 and is subject to change if HMRC change the regulations for the self assessment tax penalty waiver.

https://www.gov.uk/browse/business

You will also find information on that page regarding your class 2 national insurance contributions and how delay in payment could affect your benefit entitlements you are soon due to receive.  If you are in receipt of working tax credit / universal credit or similar, delaying submission of your return may affect these benefits too.

Tax Help, Tax News

Furlough updates and information for employers.

Coronavirus Job Retention Scheme

If you have still not filed your submission for the September CJRS, you need to act fast, the deadline is 14th October 2021. If there is a legitimate reason why you have not submitted your claim, its possible you may be allowed an extension, find out more here: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

If you believe you have claimed too much or too little

If you believe you have claimed too much JRS and are concerned about interest and penalty payment, you can let HMRC know about this online here: https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

If you have not claimed enough JRS, you need to amend your claim within 28 days after the month the payment relates to, the very last date for September is 28th October 2021, you can find out more here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/get-help-with-the-coronavirus-job-retention-scheme

If you can not bring back your employees now furlough has ended

If you will not be able to bring back your employees after furlough, you must remember that the usual employment protections still apply, including redundancy rules. You can assist your employees to find new employment by pointing them toward the JobHelp website here: https://jobhelp.campaign.gov.uk

Self Assessment Tax Return Online and Limited Company Accounting Services

Exit mobile version

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close