Self Assessment

Self Assessment

All self-employed individuals in the UK are legally required to file and submit a tax return to HMRC for each tax year that they work as a self-employed individual.

The Self Assessment system is used by HMRC to collect Income Tax deductable from pensions, wages and savings. Individuals and businesses must also report other income streams when filing a tax return.

Based on how accurately you report what is owed, HMRC will calculate your due tax; therefore, it is very important to use the services of a professional UK accounting firm in order to calculate the correct due amount and cut down liability as much as possible.

This tax filing requirement is not limited to only self-employed individuals, however, and you may be required by UK law to submit a self assessment tax return if:

  • You receive rental income as a landlord
  • You are in receipt of overseas income taxable by UK law
  • You are working in the capacity of a Company Director
  • You are earning over £50,000 and you or your spouse claims Child Benefit
  • You are eligible for claiming employment expenses (allowable) of over £2,500
  • Your combined annual income is over £100,000
  • You are incurring a substantial annual income through investments (over £10,000)

Submitting your tax return on time is absolutely critical. If filing deadlines are not met, you may have to face strict (and completely unnecessary) penalties for late filing.

Unlike most professional accountants, we will file your self assessment tax return for a flat rate. You can very conveniently submit it online at your convenience, and should you require any assistance, simply get in touch with us directly. We'd be happy to assist you in any manner whatsoever.

Good to Know Self Assessment Facts

  • The UK tax year begins from 6th April of the current year till 5th April of the next year.
  • UK tax returns must be completed and filed by the 31st of January each year (on), following end of tax year for the respective tax return.
  • UK Self Assessment was originally introduced in the 90s and allows all taxpaying individuals to "self assess" tax liability.
  • To reiterate: missing your tax return can result in heavy fines imposed by HMRC.

How much tax you owe is determined by what income tax band you are in. For instance, a specific rate applies to Capital Gains Tax, that is, if you need to pay it. Similarly, a different rate applies if you sell off shares.

Understanding and preparing your self assessment tax can be riddled with complications. But it doesn't have to be. Even if you missed your online tax return the previous year, you can still register and send it online in a smooth, easy and transparent manner through our software.

Just follow the online instructions, and submit your tax return effortlessly, whether you're filing your tax return as a partner, self-employed individual or non-UK resident.

Please feel free to forward any questions or concerns via the Contact Form or write to us at info@selftax.co.uk.