Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but
some things remain the same, and that’s the deadline of 31st January
for Self-Assessment returns.
is a system HMRC uses to collect tax. For people who are self-employed, with
their own business or others who make additional income.
The dates for
April 2016 to the 31st March 2017. With online returns needed to be
January 2018 and paper returns to have already been submitted by 31st
The best way
to keep the tax bill down is to have your paperwork organised. You will need the
actual receipts to claim as expenses. Collate your receipts and keep together
as HMRC can ask to see evidence at any time. Another great way is to utilise
the ISA savings as any interest received is tax-free. You’ll keep your savings
on a tax-free basis for as long as you keep the money in your ISA accounts.
tax payers benefit from additional tax savings when they contribute in to
pension schemes and give to charity.
of a list of records you will need are;
- Business and personal bank statements
Records of income
- Records of purchases
- Rental Income
- Interest Income
- Child Benefit and Income Support
You need many
other records to keep, here at Cross Accounting we give our clients a more in
detail list of records which we require from them to complete their tax return.
This also includes a reminder of approaching deadlines to ensure not to be
penalised. HMRC fine £100 for anyone who misses the 31st January
revealed a record number of people are filing for self-assessment this year as
the numbers are north of eleven million. If you’re a couple of years behind,
then do not worry as you’re not alone, we have taken on a number of clients in
this situation, and have supported them and brought them up to date. If you’re
not sure if you need to submit a self-assessment or you need to complete a
return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk
to see how we can assist you.
Don’t be one of the £2 million people who leave the updating of their Self Assessment to the last minute, or worse miss the deadline altogether. Bite the bullet if you need help then pick up the phone to an experienced professional.
Many clients that come through our doors, still needing reminding of what information is required to complete their Self Assessment online without a hitch.
Please see my 6 point plan
Your UTR Number and National Insurance
To be able to submit a Self Assessment you first have to be registered with the Inland Revenue as Self Employed. They will then issue you with a 10 digit reference number call a UTR number. This can be done over the telephone 0845 900 0444
Or online, follow the link below.
This takes about five to six weeks for the Inland Revenue to register you, you will then have to telephone them to get your 10 digit UTR number. This is not automatically sent to you.
The Government Gateway
To register for Self Assessment online which allows you to send your Self Assessment online, you are issued with a 12 digit reference number which is printed out, and a password gets sent to your nominated address. If you are using an Accountant they will give you an 64-8 form to sign so that they can act as your agent with the Inland Revenue. They will then be able to send off your Self Assessment online through their agency number.
There is mis-conception that Partnership accounts are as straight forward to submit as your normal Self Assessment. You can only send out a paper version if you do this yourself by the deadline 31 October. Or you can submit the form online provided you have professional software, your Accountant professional can assist you with this.
Do not leave these to the last minute or you may find a £100 fine per partner you weren’t expecting if you miss the deadline. This needs to be completed along with your normal Self Assessment as an individual.
Self Assessment covers ALL income you receive during the financial year, 6 April to
5 April for in the UK and the rest of the world. This is determined by your residency status, all UK residents are to disclose their whole income.
All records of purchases during the financial year including any equipment or capital expenditure.
VAT return’s if that’s applicable
Your full 12 months bank statements, personal and business including saving accounts.
If you have had other employment all P60’s or P45’s
Dividend and interest payments.
Property income and foreign income
Selling of personal assets and stocks and shares
All other records of income not covered above.
What you get in return
We will provide you with a full record of your income for the year for your business, along with a tax computation recording all of your other income. This takes into account the relevant tax reliefs available. Ie
Your tax code, – your tax free allowance
Capital gains tax free allowance
EIS and venture capital schemes – Investments
Rent a room relief – Property income
Wear and Tear Allowance – Property income
Deducting any tax that you have already paid.
You may be liable for tax on your trade income, and national insurance.
This is not complicated if you give yourself plenty of time to get everything together. We take you through every step of the way.
You have to make payments on account if your turnover is over £70,000, these are taken at the 31 January deadline and 31 July. We will notify you of these deadlines as they approach.
Monthly you can set up a direct debit with the Inland Revenue
Bill Pay or cheque, any balances then can be settled through the online system Bill Pay, credit card charges apply or by cheque in the post, or through the Giro system at the Post Office.
Self Assessment can be submitted anytime after the 6th April, so if theres a refund due to you why wait until January to get the paperwork to your Accountant. You can do it anytime.
These records need to be kept for six years even if you returned to the PAYE system.
Give us a call today, and make it a stress free process. 02920653995 or email Nicola@crossaccountingservice.co.uk
This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.