Self-assessment tax and what you should know

Self-assessment tax is an important type of return that you need to be aware of. Typically, tax is automatically deducted out of your wages, pension or savings. But, if you receive income from somewhere else (such as a business) you may need to file a return.

What is a self-assessment tax return?

If you are an experienced business owner or landlord, you’ve probably heard of a self-assessment return. But, for those just starting out, or those who do not do their own accounting, you may find yourself stumped; not many know how to pay self-assessment tax. A self-assessment return allows HMRC to see just how much you are making that is not included in your wages. These returns need to be as accurate as is possible, or you could pay a minimum of £100 for late filing, or more depending on how late it is.

Every tax year starts and ends at the beginning of April. Your tax, however, needs to be paid prior to this. If you haven’t already, you need to register for self-assessment by the 5th of October 2021. Further, your returns need to be submitted by October 31st 2021 (for paper returns) or January 31st 2022 (for online returns). Similarly, your tax needs to be paid before January 31st 2022.

What does this mean for me?

If you are self-employed, a sole trader, or part of a partnership, you need to be filing a self-assessment return. As stated before, late or misfiled returns can lead to huge fines for you or your business. If you are a business that hasn’t prepared themselves to file their self-assessment return or are dissatisfied with your previous self-assessment return, we could help.

Statistics show that 60% of people who file their self-assessment tax do so late. Sole traders and those who are self-employed need to keep on top of their returns. Here at Carrington Blake Accountancy, we aim to help you with your tax returns; we boast ease and speed in our services. Our self-assessments are done from as low-cost, from £79 plus VAT. Please don’t be afraid to contact us to find out more about how we could help.

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