Filing your self-assessment tax return isn’t impossible if you know how to perform all the legal proceedings. Through a system known as self-assessment, individuals and businesses in the UK can report their earnings and outlays to HM Revenue and Customs (HMRC). To assist you in accurately filing your self-assessment tax return, we will guide you through each step of how to file self assessment tax return procedure in this blog.
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What is a Self-Assessment Tax Return?
Self-assessment is a way for HMRC to get income tax from people. Sometimes, people who have made money that HMRC doesn’t know about, like business profits, need to report that money to HMRC in a self-assessment tax return.
For a given tax year, the tax return lists how much money a person made and where it came from. Everyone who owns a business has to fill out a tax report online, send it to HMRC, and pay their tax bill by January 31 at midnight; the deadline for paying tax bills on paper is midnight, 31 October. HMRC must receive your tax return by 5 October if you have not already done so.
People use a self-assessment tax return to report their worldwide income and cash gains for a tax year. You would have had income from work in the tax year that finished on April 5, 2024. This is shown on your P45. You will also make money and spend money as a self-employed person. Fill out SA102 (work) and SA103 (self-employment) on a paper tax return, along with any additional self-assessment pages required. As a sole business or self-employed person, you should sign up for self-assessment if you haven’t already.
Who Must Send a Self-Assessment Tax Return?
Before knowing how to file self-assessment tax return, it is important to know who has to file a tax return. Before April 5, if any of the following were true for you, you need to send in a tax return:
- You worked for yourself as a “sole trader” and made more than £1,000 (before deducting any amounts you can get tax back on).
- You worked with someone else on a business deal.
- If your total taxable income was more than £150,000, you had to pay Capital Gains Tax on things that you sold or “disposed of” that went up in value.
- You also had to pay the High Income Child Benefit Charge.
Send a tax return if you have any cash that hasn’t been taxed, like:
- Tips and commissions:
- Money from savings, investments, and earnings;
- The money comes from renting out a house.
- Money from abroad
If you need to fill out a tax return but haven’t yet, you need to let HMRC know by October 5. If you sign up for Self Assessment, you can tell HMRC.
You can send your tax return to:
Claim some tax breaks for your income;
Show that you’re self-employed. (To get tax-free childcare or maternity allowance)
Pay National Insurance contributions.
How to file Self Assessment Tax Return
How to file self assessment tax return online: you must create an account with HMRC. You can accomplish this by registering for the HMRC website’s online self-assessment service. HMRC will mail you an activation code once you’ve signed up. To complete the process of creating your account, you must input this code. Before beginning the process, make sure you have all the necessary documents. Here are a few examples of unique tax identification numbers for you. Your national insurance number is P60, and if you have a job, it is P45. Bank statements and interest documents. Evidence of income, such as savings, rental income or self-employment receipts for your expenses (if you work for yourself).
How to Avoid Penalties
If you submit your tax return or pay your bill late but before the penalty period, you will be charged more. If you file your tax return more than three months late, you will have to pay a £100 fine. You’ll have to pay more if you pay your tax bill or show up late.
If you pay late, you’ll be charged interest. Figure out how much you will be fined if you file your Self Assessment tax return more than three months late or if you pay your bill late.
If you have a good reason, you can appeal a punishment.
If you Need Any Amendments
You have 12 months from the due date to email or mail your self-assessment tax return if you need to make any changes. Any changes you make could impact your tax bill, potentially making you eligible for a return or increasing your tax liability. If the 12-month limit is missed, you will need to write to HMRC. Always make sure you provide accurate information and evidence to support any requests for revisions or additional relief. You must stay on top of these changes to avoid penalties and ensure that your tax return is accurate.
Conclusion
In conclusion, here are all the details on how to file self assessment tax return. Knowing the steps makes filing easier. If you have the correct documentation, you can register online with HMRC and submit your return on time, avoid penalties, and pay the correct amount of tax. You must keep in mind all the due dates, avoid mistakes and penalties, and follow all the essential requirements for amendments if required.
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