Your Self-Assessment is a standard tax return form. As a business owner, you’ll need to send a report of your annual earnings to HMRC. Your Self-Assessment tax return should also include the sources of your earnings.
Self assessment tax return
There are different reasons for the need to complete a self assessment tax return.
You need to register to file a self assessment tax return if any of the following apply:
You earned more than £1,000 from self-employment business operations
Are not self-employed but you still send a tax return, for example because you receive income from renting out a property
You have a Limited company and draw monies from the company as a shareholder.
You have multiple earnings (whether that is employed or self employed) and need to make sure your tax position is correct.
You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits, such as the State pension.
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DEADLINES FOR SELF ASSESSEMENT?
Currently there is an online annual deadline to file your tax return and pay any monies owed. A common misconceptions is that this is just tax, its’s not there is also Class 2 and Class 4 National Insurance payable too! This is 31st January following the tax year you have registered for.
If you do not file your tax return and make payment of monies owed to HMRC there are financial penalties that may be payable:
Self Assessment tax returns: Deadlines – GOV.UK (www.gov.uk)
AS SELF EMPLOYED WHAT DO I PAY TAX ON?
Did you know that you pay tax on the business profits and not the turnover/income? There are many qualifying expenses that you can use to bring down your tax bill without receipts, we can advise you of these! If you have assets that are used in the business you can also claim allowances against these to bring down your tax.. want to know more? …. Please contact us.
WHATS THE FUTURE OF SELF ASSESSMENT?
Making tax digital – much like the system for filing VAT returns, this is the system for collecting tax from the self employed, it will require you to file digitally through accounting software.