The deadline will soon be fast approaching to have your Self-Assessment (otherwise known as a Personal Tax Return) completed and submitted to the HMRC for the tax year 2013/2014.
Although simple in principle, state your earnings (or any losses) and taxable allowances, Self-Assessments can be a daunting prospect of a task to someone that has not completed one before.
Firstly, are you required to complete a Self-Assessment?
Certain people are required by law to complete a Self-Assessment, this list including directors of their own limited company. Other individuals who may need to complete Tax Return are:
- If you are self employed
- If your annual income exceeds £100,000
- If you have income from savings, investments or property
- If you or your Partner receive Child Benefit and your income is over £50,000
- If you have income from overseas
- If you have income from trusts, settlements and estate
- If you are liable to pay capital gains tax
- If you have lived or worked abroad or aren’t domiciled in the UK
- If you are a trustee
Do I need to do anything prior to completing my Self-Assessment?
In order to submit your Tax Return successfully to HMRC you require a valid UTR number (Unique Taxpayers Reference) and need to be set up on the HMRC’s Self-Assessment systems – you can do this by calling 0300 200 3310.
Let’s get started on this Assessment
Your Self-Assessment should reflect any income and capital gains received within the tax year. Further, it should also state any claimable tax allowances and/or reliefs. Ultimately the tax you will owe to the HMRC will be calculated upon the amount reached using the below formula; Income – Allowable expenses = Amount tax is calculated upon Nowadays with a higher percentage of the population engaging with the digital and online world, the majority of Tax Returns are submitted online. A paper submission is still accepted however these Returns have a deadline 3 month’s earlier to the online returns.
Key dates to remember:
5th October 2014: Deadline for registering for your UTR number in order to complete your Assessment
31st October 2014: Deadline for paper submissions of Self-Assessments
31st January 2015: Deadline for online submissions of Self-Assessments
And lastly, what would happen if I missed these dates?
There are standard fines set in place by the HMRC for those who either do not complete their Self-Assessment or submit it past the deadline of 31st January. You will automatically receive a £100 fine for late submissions – this fine will increase thereafter if your Assessment is 3 months late, 6 months and late so on. Please note, after completing your Assessment, if the outcome is that you are liable to pay tax to the HMRC then this amount will need to be settled by 31st January 2015 also.
Payments on Account
Payments on Account are advanced payments towards your tax liability for the following tax year and as a result of your Self-Assessment that has been calculated and completed, you may be required to make these payments of account. For further information on these payments please read our in the know: payments on account explained blog. We hope the above information has eased any worries you may have had with regards to filing your upcoming Self-Assessment however, please feel free to call our specialist Personal Tax Team on 01707 871610 or request a call back if you do require any further information.