Self-Assessment Time is Coming - Are You Prepared?


Self Assessment Tax Return

December 14, 2020

The holiday spirit does indeed seem to be thin this year, even as business owners navigate haltingly through the ‘difficult winter’ that was predicted by the UK government thanks to the coronavirus pandemic. As the end of the year draws here, all too, soon it will be time to file your self-assessment. In the present scenario, it appears to be prudent to have things ready well in advance as given the uncertainties it should chance that sudden last-minute changes force you to rush through things.

Did you know?

If you are an employee can you receive a tax code notice from the HMRC, with a change to your tax code but for some reason your tax code was not changed then the tax owed needs to be reflected in your self-assessment and paid, especially if you are still to make a voluntary payment.

Haste makes waste as many a time in the stress of hurrying through things you might forget to add some vital bit of information or skip claiming some expenses. Every year, several thousand Self-Assessments have trivial errors on them – ranging from incorrect addresses to even figures digits overlooked in the income amounts stated (like missing a zero). Sheer carelessness this may seem; but with all that a business owner has to do, it is no surprise that mistakes too creep-in.

Self-Assessment myths busted

It is not only the self-employed who need to file their self-assessment. Certain criteria need to be kept in mind for they point towards the need to comply with a Self-Assessment. To make things easier, refer bullet points have been listed below in quick.

However, just reading about Self-Assessment is not enough. In order to ensure that things are reported accurately, and on time, it is better to have an accountant with whom you can confer and entrust the task of the submission.

The deadline for completion of Self-Assessment online

For the previous tax year, 2019-20 – 31st January 2021 stands as the deadline for online filing. Paper return filing deadlines, of course, closed as early as 31st October 2020. Having form SA100 submitted is a hassle that most business owners choose to avoid.

Who needs to file a self-assessment?

The clock is ticking towards the deadline, and yet you are not sure whether it is relevant to you? The basic rule for filing self-assessments is that if you have received any income that has skipped being taxed at its source then as a rule of thumb – you cannot evade filing it.

Business owners, be they a sole trader, a partnership, a company’s director; etc. – need to file it. In case you do receive a notice from the HMRC requesting the filing of your Self-Assessment then you would have to comply as there is no backing out there. Therefore, considering all the intricacies, it just does not seem worth the saving to try a do-it-yourself option here. In fact, an expert accountant can help you in saving tax as well as in future tax planning! Being prepared would certainly, help you be in a better tax position, and also, you would avoid the worries associated with tax investigations.

When You are not Employed and Still Expected to Submit a Self-Assessment:
 

  • If the savings you have made or if your income from investments is £10,000 or greater than this prior to tax deductions
  • If you receive income of £2,500 or a bit more than this due to perhaps your savings or rent income
  • If you act as a trustee in a trust-based or registered type of pension scheme
  • Capital Gains Tax is applicable if you have made a profit in selling a home, shares or chargeable type of assets and you need to submit your self-assessment as well
  • The same applies for shares or dividends that you have received, especially if you are on the higher rate tax band
  • Income exceeding £100,000 also would have to be considered here
  • Online selling also implies that you need to file a self-assessment if a fair amount has been earned
     

Taxation is no walk in the park. Effective tax planning and showing the right expenses can help you save on tax. Therefore, look no further than Doshi Outsourcing who have over two decades of experience in accountancy and taxation. With the experts on the job, you won’t just save on the taxes and have a game plan in place, but you will be able to focus on what really matters - the growth of your business! So, before the taxman comes knocking be sure to contact Doshi Outsourcing - telephonically on 020-8239-4999 - via email on - Dhruv@doshioutsourcing.com