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Starting a new business is an exciting journey, but it also comes with its fair share of responsibilities, including managing your taxes. One crucial aspect of this is filing your Self Assessment tax return. This guide will walk you through the process, ensuring you understand who needs to file a Self Assessment tax return and how to file a Self Assessment tax return.
Whether you need to complete a tax return or not will depend on your specific circumstances. The onus is on you as the taxpayer to notify HMRC if you are required to file a Self Assessment tax return.
You must file a Self Assessment tax return if, in the last tax year (6 April to 5 April), any of the following applied:
There may be other scenarios which require you to file a Self Assessment tax return but the above circumstances are the most common for those working in the tech sector.
If you are in any doubt as to whether you need to file a Self Assessment tax return please get in touch and we would be happy to advise you.
Filing a Self Assessment tax return involves several steps:
Payments on account are advanced payments towards your tax bill and apply if your last Self Assessment tax bill was more than £1,000. Each instalment is half of your previous year’s tax bill.
If you prefer, you can pay the amount you owe in instalments before the deadline. If you don’t pay by the deadline you will be charged interest and penalties.
If the outstanding tax is less than £3,000 you can request that HMRC collect this amount via an adjustment to the PAYE tax code (where applicable) but you will need to file your tax return by 30 December.
You should be able to claim a tax refund if you have paid too much tax. An Accountant can help reduce your tax bill and claim any refunds on your behalf.
To determine if you need to file a Self Assessment tax return, consider the following for the previous tax year:
If any of these apply to you, then you need to file a Self Assessment tax return.
Even if you are not required to file a tax return, there could be a benefit of doing so if you want to claim tax relief for expenses that you have incurred. An Accountant can help you assess the tax savings available if you were to file a Self Assessment tax return.
There are two types of self-employment supplementary pages: short pages (SA103S) and full pages (SA103F).
The short pages contain sufficient entry boxes for the typical small business, whereas, the full pages have boxes covering the more unusual types of income or deductions.
If you need support in filing your Self Assessment tax return an Accountant can do this for you.
If a Self Assessment tax return is not filed by the due date and the taxpayer does not have a reasonable excuse for late filing, penalties will be charged. The amount of the penalty depends on:
The penalties for late filing are:
This article has explained who needs to file a Self Assessment tax return and provides guidance on how to file Self Assessment tax returns with HMRC.
Filing your Self Assessment tax return might seem daunting at first, but with the right preparation and understanding, it becomes a manageable task. Remember, keeping accurate records throughout the year will make this process much smoother.
Please get in touch if you would like to discuss how Tech Relief can help you manage your Self Assessment tax obligations for you. It can help to speak with a professional who can advise you on your specific circumstances.
Good luck with your startup, and happy filing!
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