Personal Tax

Self Assessment Tax Return

There are many types of situations where HMRC require an individual to prepare and submit a Self Assessment (SA) tax return. SA returns are usually required for those in self-employment or where the source of income is irregular or uncommon.

You may need to complete a Self Assessment tax return if you fall in one of the following categories:

  • Self-employed
  • Partner in a partnership
  • Earn a dividend income of more than £10,000 from shares you hold in a company (including your own limited company)
  • Live in the UK and have foreign income
  • Live abroad and have UK income
  • Trustee of a trust
  • Receive untaxed income or liable to capital gains tax (for example, for the disposal of stocks, shares, or even property)
  • Have untaxed savings or investment income
  • Have property on rent
  • Income in excess of £50,000 and receive child benefit
  • Have income above £100,000

Payments on account

Payments on account are part of the self assessment process and means that you have to pay your next year’s income tax liabilities in advance, based on the amount you owed on your last tax return. The amount you have to pay is based on your previous year’s tax bill and is paid in two equal instalments. The first payment is due by 31 January during the tax year, the second by 31 July following the end of the tax year.

You won’t be required to make payments on account if your tax bill was less than £1,000 for the previous year, or if you’ve already paid 80% or more of any tax you owed (for example, through deductions at source) for the previous year.

Balancing payment

Your payments on account are based on your earnings for the previous tax year. But, if your earnings for the current year is higher, you will be required to make a ‘balancing payment’ on 31 January following the end of the tax year. Tax due on capital gains or a student loan will be included in the balancing payment.

How we can help

When preparing your tax return we will look for all possible tax deductions you may be entitled to so you don’t pay more than what you’re required to. We won’t just stop there, we will advise you of the best practices and ways you can conduct your business to minimise your personal tax liability.

We will file your Self Assessment tax return with HMRC using HMRC approved software and advise you of the tax liability and the payment due dates so you never have to worry about a late filing or late payment penalty!

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