• Posted 11th March 2015

Self-Assessment Tax Return-What you need to know?

Self Assessment is a system used by the HM Revenue and Customs’ (HMRC) for collecting Income Tax. Taxes should be paid to H M Revenue & Customs (HMRC) on the two set dates. They are made in two instalments. You need to pay the first one on 31st January for the tax you owe on the previous year or second one on 31st July. A tax accountant can help you complete a self-assessment tax return form online or on paper on the set date 31^st January, 2015 and 31^st October, 2014 respectively. In case, if you have not received a tax return paper, do contact at 0300 200 3310 for HMRC Self Assessment Helpline yourself. Whether you are self employed or employed, a partner or a director in a business and receive income not taxed at source, you should file a Self Assessment Tax Return in the UK. The incomes not taxed at source include rental income from any of your owned property, or income from abroad. If you have these types of income, you should inform the HMRC immediately. Apart from the above situations, you’ll need to send a tax return if, in the last tax year:

• Your untaxed income from rent or investments was £2,500 or more
• Your work expenses were £2,500 or more
• Your savings or investment income was £10,000 or more before tax
• You made profits from selling shares, a home or other assets and need to pay Capital Gains Tax
• You or your partner got Child Benefit when your income was over £50,000
• You lived overseas but had a UK income
• Your income was over £100,000

So, how do you start the self-assessment tax return process? Well, you should start with an accountant. He/she will ensure the tax returns are filled accurately. You need to keep all the above financial records including bank statements and receipts which will help your accountant for filling returns. If you didn’t send a tax return last year, registering for self-assessment is very important. Your accountants can do it for you. They know that registering for self-assessment tax return deadline is October 5^th, 2014 and it must be done by then for completing it. Also, they are aware of the penalties if the deadline is not met. To know more about the self-assessment, contact one our London accountants today. Contact us at 075 1807 5357 or email us at info@phoenixtaxaccountancy.co.uk. Here is an info-graphic summarizing all the above mentioned points about self-assessment.