Self assessment tax returns
Ideally you should be able to complete your own self assessment tax return, but as the UK tax system becomes
steadily more complicated it is no surprise that most people prefer seeking help from a tax expert.
From our offices in Brighton we prepare tax returns for sole traders, employees, retired clients with
investment income, and property investors with rental
income from buy-to-let properties. The service includes an overall
review of your affairs to see if there are any areas where your tax
liability can be minimised. We will claim any tax relief and tax allowances
to which you may be entitled, and if possible reduce the payments on account
that you have to make.
Once your tax return is complete, we explain the end result to you, and how it
has arisen. If there is tax to pay we explain how much is due, when it is
due and how the payment can be made. If you feel it might be a problem to
pay the tax on time, we can discuss what happens if it is not paid, and explore
the options available.
We use specialist tax software to produce your tax return and file it
securely over the internet. This eliminates the risk of penalties due to
the return being lost by either Royal Mail or the tax office, and
results in a much quicker tax refund to you if one is due.
Frequently asked questions - self assessment tax returns
Do I need to complete a tax return?
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If you have been sent a blank tax return, or a notification to complete
one, then you will need to fill one in, regardless of whether there is any tax
payable. Tax returns are usually requested from company directors, people with untaxed
income, people paying higher rate tax or people with more complicated
affairs.
If you have not been issued with a tax return but are still liable to tax
(after allowing for tax deducted from income before you receive it, such as on
salaries or bank interest), or you have received a new source of income, or you have made a chargeable capital gain, then
under self assessment it is
a requirement to notify the tax office within 6 months of the end of the tax year
(which ends on 5 April). They
are then likely to issue a tax return. You should not wait until you hear from HM Revenue
& Customs, or assume that they know about all your income - doing so increases your
risk of incurring penalties and being subject to a tax investigation.
When does my tax return need to be done?
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Although the tax office like to give the impression that the deadline
for your tax return is 30 September, it is actually 31 January,
or 3 months after the date of issue (if later). We would not recommend leaving it that late, though. The earlier we can complete your tax return, the
more notice we can give you of the amount of tax to pay (the payment date does not change), or claim any tax
rebate.
What do you need to complete my tax return?
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The first time you come to see us, you should bring any recent correspondence you have had
from HM Revenue & Customs, together with a note of your National Insurance number and your
10-digit tax reference number (if you know it). It is also now a requirement for all accountants to obtain proof
of identity of all new clients, and so we ask that you bring a form of ID that includes
your address and a recent
photo.
To complete the tax return, for the tax year
ending 5 April, we are likely to need the following if they apply to you:
- Details of interest received from banks or building societies.
- Details of dividends received, or dividend vouchers.
- Details of any pension payments you have made.
- Details of any pensions (state or private) you have received.
- Details of any state benefits you have received.
- From all employments, your P60 pay certificate or your P45, and your P11D statement of
expenses payments and benefits in kind, if you have one.
- Dates of when you started and finished each employment.
- If you are an employee, any PAYE coding notices you have received from the tax office.
- If you have received any rental income, details of the amounts received and all expenses paid,
including mortgage statements.
- Details of any Gift Aid payments you have made to charities.
- Details of any student loans that are being repaid through the tax system.
- If you have been out of the UK for any long periods, the dates that you have been in the UK
in the last few years.
- If you have sold any properties or assets, the completion
statement and details of how the asset was acquired.
- Anything else that you think may be relevant to your tax return.
If in addition you are self-employed as a sole trader, a CIS subcontractor or in
a partnership, accounts will be needed for your business. For the information
that we need for this, please see the similar question on our accounts page.
When do I have to pay my tax, and what happens if I don’t pay it?
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Your tax return may result in a liability to income tax, national insurance or capital gains tax
(CGT). This will be payable
by the 31 January following the end of the tax
year. Interest is charged on any tax unpaid. It is calculated on a daily basis, at an annual rate of
around 7%. On 28 February and 31 August, a 5% surcharge will also be added to any tax
outstanding on those dates.
Once your annual tax liability reaches a certain level, you may have to start making 6-monthly payments in advance of
your final tax bill for the year. These payments are due on 31 January and 31 July. Interest
is similarly charged on late payment, but there are no late payment surcharges.
Got another question? Email us and we'll try to help.
Useful links
HM Revenue & Customs main page for self assessment tax returns
2006/07 self assessment tax return forms and help sheets
How to pay your self assessment tax
Self assessment tax returns