Self-assessment
Self-assessment
Self-Assessment is a system in the UK which HM Revenue and Customs (HMRC) uses to collect income tax from self-employed persons by the Income Tax (Trading and Other Income) Act 2005. HMRC requires individuals and businesses to report their income and expenses each tax year. Self-Assessment is in place to ensure that people are paying the correct amount of taxes based on profit from their income.
Imperial Bookkeeping Limited is here to help individuals, sole traders or small businesses navigate through the Self-Assessment tax process. Here is how it works:
- Registration: If you are new to Self-Assessment, you will need to register with HMRC. I can help you with this process and ensure that you are registered correctly.
- Record Keeping: As part of the Self-Assessment tax process, you will need to keep accurate records of your income and expenses. I will advise you on how to keep these records and ensure that you are maintaining them in a way that is compliant with HMRC regulations.
- Tax Return: Once the tax year has ended, I will help you complete and file your tax return with HMRC. This will involve entering your income and expenses into the appropriate sections of the tax return form.
- Payment: Based on the information you provide in your tax return, HMRC will calculate the amount of tax you owe. I will advise you on how to make this payment and ensure that you are paying the correct amount.
By using Imperial Bookkeeping Limited Self-Assessment services, individuals and small businesses will benefit in several ways. Here are a few examples:
- Reducing Stress: Completing a Self-Assessment tax return can be a stressful and time-consuming process. By outsourcing this task to a professional bookkeeper, you can focus on running your business and enjoying your personal life, while I take care of the paperwork.
- Increased Accuracy: As a qualified bookkeeper, I can ensure that your records are accurate and up to date, and that your tax return is completed correctly. This will help you avoid penalties and interest charges from HMRC.
- Tax Savings: By working with Imperial Bookkeeping Limited, you may be able to identify tax deductions and credits that you were not aware of, resulting in potential tax savings.
Do not hesitate to get in touch if you have any further questions, or if you would like to schedule a consultation.
Frequently asked questions
What is Self-Assessment?
Self-Assessment is a system in the UK which HMRC uses to collect income tax from self-employed persons by the Income Tax (Trading and Other Income) Act 2005. HMRC requires individuals and businesses to report their income and expenses each tax year. Self-Assessment is in place to ensure that people are paying the correct amount of tax based on profit from their income.
Who needs to complete a Self-Assessment tax return?
Anyone who is self-employed, earns income from renting out a property, or has income from investments or savings that is not taxed at source may need to complete a Self-Assessment tax return.
When does the Self-Assessment tax year begin and when does it end?
The Self-Assessment tax year begins on 6th April each year and ends the following year on 5th April.
When is the deadline for submitting a Self-Assessment tax return?
The deadline for submitting your Self-Assessment tax return online and paying any taxes owed to HMRC is on midnight, 31st January the following tax year. If submitting a paper tax return, it is midnight, 31st October of the year following the tax year.
What happens if I miss the deadline for submitting a Self-Assessment tax return?
If you miss the deadline for submitting your Self-Assessment tax return or paying any taxes owed, you may be subject to late filing penalties of £100 if your tax return is up to three months late and interest charges on late payments. Interest is calculated on a daily basis at the official Bank of England rate plus 2.5%. You can appeal against a penalty if you have a reasonable excuse.
What information do I need to complete my Self-Assessment tax return?
You will need to provide information about your income, expenses, and any tax deductions or credits you are eligible for. This may include details about your employment income, Self-Assessment income, rental income, and investment income.
Why should I use a bookkeeper to help with my Self-Assessment tax return?
A bookkeeper will help you ensure that your Self-Assessment tax return is completed accurately and on time, minimising risk of penalties and interest charges. Additionally, a bookkeeper can help you identify tax deductions and credits that you may not be aware of, potentially reducing your tax liability.
How much will it cost to hire Imperial Bookkeeping Limited for its Self-Assessment tax return service?
It depends on the complexity of your Self-Assessment tax return. A simple tax return will cost from £150, while a more complex tax return could cost up to £450. However, the average cost in most cases is between £150 and £250.