If you are planning to run your own business in the UK or are just starting your own shop, paying tax is unavoidable.
Each of your transactions needs to be tax-declared or even VAT to be considered a fully legal business.
The Self-Assessment Tax Return is an important tool used by HMRC to collect income tax and is a document that businesses and individuals must submit.
What is A Self Assessment Tax Return?
Generally, when you are self-employed or sole trader, HMRC automatically deducts pensions etc. from your salary.
Once you have an additional source of income (grant, rental property, etc.) you will need to report to HMRC and file a self-assessment tax return.
Who Needs to Send a Self Assessment Tax Return?
You need to submit a self-assessment tax return to HMRC if you are:
- Self-employed status with an income of more than £1.000 (before any tax relief can be claimed).
- Partners in a business partnership.
- In addition to regular income, you have other tax-free income (for example: rental property, overseas income and commissions, etc.).
If you are not sure if a submission is required, please contact our accounting team for assistance.
Important Deadlines for Tax Returns
January 31: Deadline to send tax returns online and pay taxes.
Tax year: From April 6 to April 5 of the following year.
October 5: Deadline to register for self-assessment.
October 31: Deadline for paper tax returns.
Penalties for Missing Submissions or Payments
Some businesses may operate on a fluke, and concealment will usually be severely punished.
Merchants will face fines if they accidentally miss the deadline for submission or payment.
Usually delays of up to three months will result in a late filing penalty of £100, which will accumulate over time.
In addition to this, any late payment will incur interest in addition to the penalty principal.
The penalty can also be appealed if the merchant has reasonable grounds to justify the delayed submission.
How To Get Help
If you are not familiar with the declaration materials and the information to be filled in, you can seek the help of an accountant.
You may want to get any text help through the official website, please make sure you enter the correct address and identify information.
While you’re getting help, pay more attention to verifying help channels and avoiding being scammed.
Finally, any tax questions, you could contact our accounting team for more information!