Filling in self assessment tax claims can be a nightmare. In fact, even trying to figure out if you have to use the self assessment tax tools is a conundrum itself. That’s why, we make the process easy, here at Beanz Accounts. We can handle all the paperwork for you, so you are free to run your company as usual.

Self Assessment- A step by step guide:

Who must send a tax return? The tax year runs between the 6 April to 5 April the following year.

You’ll need to send a tax return if, in the last tax year:

  • your income from self-employment was more than £1,000 – this is your ‘trading allowance’
  • you earned more than £2,500 from renting out property
  • you earned more than £2,500 in other untaxed income, for example from tips or commission
  • your income from savings or investments was £10,000 or more before tax – this includes money from bare trusts or interest in possession trusts
  • your income from dividends from shares was £10,000 or more before tax – tell HMRC if it was over your dividends allowance
  • you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
  • you were a company director – unless it was for a non-profit organization (such as a charity) and you did not get any pay or benefits, like a company car
  • your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
  • you had income from abroad that you needed to pay tax on
  • you lived abroad and had a UK income
  • your taxable income was over £100,000
  • you were a trustee of a trust or registered pension scheme
  • you had a P800 from HMRC saying you did not pay enough tax last year – and you did not pay what you owe through your tax code or with a voluntary payment
  • your State Pension was more than your Personal Allowance and was your only source of income – unless you started getting your pension on or after 6 April 2016

You also need to send a tax return if you:

  • need to prove you’re self-employed, for example to claim Tax-Free Childcare or claim Maternity Allowance
  • want to make voluntary Class 2 National Insurance payments to help you qualify for benefits
  • Certain other people may need to send a return (for example religious ministers or Lloyd’s underwriters) – you can check whether you need too. You will not usually need to send a return if your only income is from your wages or pension.

How do our self assessment accounting services work?

a) If you are registered for self assessment, we will need to collect all of your personal details. Including your previous tax return copies from at least the last year, but preferably, the previous 3 years. With this collected, we can take the necessary steps to becoming an agent to act on your behalf.

b) If you are not yet registered, you will need to do so. This could take up to 3-4 weeks to complete. We can them move forward together.

Completing your tax returns

Our professional team can complete your tax return, and notify you by letter, explaining the tax payments due and the breakdowns of cost. Once you sign this, and return it, we will file it and send you a confirmation letter.

To discuss any issues or further planning, we will be available by telephone, during our working hours.

Paying your taxes

After the tax return has been filed, we will explain the payments that are necessary. If the bill comes to more than £1000 then payment on accounts will come into play. We will remind clients of these days.

We will also send a copy of the filed tax return to you, for your own records.

The early bird…

Many people choose to register for self assessment, and file their tax returns early. There are a number of reasons for this, including:

1)    Tax refund bonus

If you file your tax early, you will be more likely to receive your tax refund quicker than normal, because HMRC are dealing with less tax returns at the time.

2)    Prepare your cash flow

By filing early, you can have time to organise your cash flow and allocate funds to cover your tax bill without any nasty surprises.

3)    Allow for a thorough check

Leaving your tax return till the last minute means that you may miss expenses that could have been claimed back. This can lead to paying too much tax.

4)    Don’t get caught with a fine

HMRC sends out a £100 fine immediately, and this fine can increase with additional penalties and interest.

5)    Avoid higher accountancy fees

The earlier you claim, the lower the cost will be for an accountant. The later you leave it, the further back you will be in the queue. Which means you could miss out on all of the previously mentioned benefits.

7)    Contacting HMRC

If you leave till last the last minute your accountant will not be set up to be an agent for you. As a result, you will have to contact HMRC by telephone, which could waste hours of your time, during an extremely busy period.

8)    Payment Plan

File your return before the end of September and the taxes you owe can be adjusted in the tax code in the following year. This means a tax free installment plan with HMRC and you won’t pay anything till the next tax year starts.

For all your self assessment tax requirements, get in touch today!