Self Assessment Tax Returns

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Self Assessment Tax Returns

If you are self-employed, you are required to complete a Self Assessment Tax Returns each year. This can be done online or with pen and paper. You can also hire an accountant to assist with the process.

A self assessment tax return is a form that tells HMRC what income you earn, as well as how much tax you owe. There are specific requirements for completing the return.

It is important to submit the return by the end of January. Failure to do so could result in penalty fees or interest. To ensure that you don’t make any mistakes, start early.

The return must include all income you receive and details of capital gains and allowances. You must also claim any reliefs.

Payment on account

Once you’ve completed your return, you’ll need to pay it to HMRC. Payment options include direct debit, cheque, or a bank transfer. Paying by cheque is the fastest, but this can incur a fine.

If you’ve been overpaid, you can ask for a refund. However, you should first pay half the amount by the end of January. After that, you can pay the remaining half by the end of July.

If you are a new self-employed person, you must register with HMRC and receive an activation code. You can also register online.

Self-assessment tax returns are easy to fill out. But make sure to check the form to ensure you have all the information you need. Using an accountant can help you avoid penalties.