Self-Assessment Tax Returns
![](/blogimages/5.jpg)
In this blog post we are going to be looking at Self-Assessment Tax Returns. (I can hear you groan already!) Now, I know tax talk can be daunting, but fear not. We're going to break it down into the must-know bits that'll help you breeze through your self-assessment tax return. Let’s begin….
What is a Self-Assessment Tax Return?
First things first, what is it?
Well, it's a form you submit to HM Revenue and Customs (HMRC) to report your
income and expenses. If you're self-employed or a sole trader, this is your
ticket to fulfilling your tax obligations.
If you're new to this, and made £1,000 or more in revenue you need to register for self-assessment with HMRC. You'll get a Unique Taxpayer Reference (UTR) number that you'll need for your tax return.
Important Deadlines:
Get a pen out and mark this date
on your calendar!... 31st January.
The self-assessment tax return
deadline for filing online is 31st January after the end of the tax year. But
don't wait until the last minute; early birds save themselves from stress and
panic of having to meet this deadline.
You can start doing your tax return as soon as you have all the information you need after the end of the tax year. The tax year runs from 6th April – 5th April.
Gather Your Records:
Now, get organised. Collect all
your financial records for the tax year. This includes income from any
employment, your business, any investments, pensions, savings, rental income,
and details of expenses that are business related.
Expenses and Deductions:
Don't forget your expenses! You
can deduct certain business expenses like office supplies, travel, advertising,
cost of equipment and even a portion of your home's running costs if you work
from there. Depending on what you do, there may be more specific expenses you
are able to deduct.
Record-Keeping:
Keep detailed records. Receipts,
invoices, and bank statements are your best friends. They'll back up your
claims if HMRC start asking questions. This is where a good professional
bookkeeper can really help. They can help keep you finances organised
throughout the year and will know what deducts you are able to claim.
Income Sources:
If you've got multiple income
sources, keep them straight. Different types of income may have different tax
rates or exemptions.
Use Online Tools:
Consider filing online using
HMRC's digital tools or software like QuickBooks or Xero. It can streamline the
process and help you avoid common errors. Here at Emerald Sky Accounts we use
Xero for all the bookkeeping and accounting needs of our clients.
Don't Miss Anything:
Review your return carefully. Make
sure you haven't missed any income or expenses. Errors can lead to overpaying
or underpaying your taxes - Which can also lead to fines.
Seek Professional Help:
If your finances are complex or
you're unsure about any aspect of your tax return, consider consulting a tax
professional or a bookkeeper/accountant. They can ensure everything is in
order.
Keep Copies:
Once you've submitted your tax
return, keep copies of all documents for at least six years. That's HMRC's
retention period for tax records.
Don't Procrastinate:
Lastly, don't procrastinate. Start
early, gather your documents, and tackle your tax return with confidence.
Remember, self-assessment tax
returns are a part of doing business, but with the right information and a bit
of preparation, they don't have to be stressful. You've got this!
..But if you feel like you haven’t
got this, we are here to help!
Latest Blogs
How To Maximise Your Cash Flow
Posted: 01/04/2024
How to read the Balance Sheet
Posted: 01/03/2024
Building a Strong Relationship with Your Business Finances
Posted: 20/02/2024
Understanding your Profit & Loss
Posted: 01/02/2024
New Year, New Business
Posted: 02/01/2024
HMRC Payment on Account: Your Guide to Tax Management
Posted: 15/12/2023