What is a self-assessment tax return?
Any UK resident needs to fill out the self-assessment tax returns properly. This form must be filled out while filing the income tax returns for the tax year. It might appear a complex process: however, considering the important things can make your task simpler. Most of the taxpayers of the UK get their tax collected through payroll schemes through employers. The employer is obliged legally to pay this tax to HMRC properly. HRMC has led down several criteria for the income earned through different sources. The tax filing must be done as per the criteria laid down.
Who must pay a self-assessment tax return?
Any people in the UK must pay the tax. If they are employed then with “Pay As You Earn (PAYE)” and no need to file any tax return. The self-assessment does not affect all of them.
It is applicable only in certain conditions like:
– You are a partner in the partnership business.
– You are earning through any self-employment business.
– You are a minister of any faith, religion, or any other denomination.
– You are the executor or trustee of an estate.
Apart from the above, there are some other criteria to file a self-assessment. These reasons are led down properly by the HRMC guidelines.
Will you be sent a tax return?
There are certain conditions where you will be sent tax returns.
Some of those conditions are:
– More than the annual exempt amount is capital gains made by you that make it mandatory for giving capital gains tax.
– You are getting non-taxable income through sources like land, property, investments, or overseas.
– You were required to pay the tax returns last year.
– You are a pensioner who gets age-related allowances.
What records to maintain to file a self-assessment tax?
The tax year in the UK is from 6th April to 5th April. The last date depends on the type of criteria fulfilled by you while filing the income tax returns. You must keep all the information of the income earned through different sources. It is also important to keep the previous year’s details of the self-assessment tax return. If you are a pensioner then maintain the forms P60, P11D, and P45. Interest certificates were received from the societies and banks. Details of the taxable income earned through any capital gains.
Why file a self-assessment online?
To keep on the correct side of HRMC, it is always better to file a tax return online.
Here are some benefits of online filing of self-assessment tax return:
– This will help you to skip scrolling of unnecessary pages that do not apply to you.
– It will help to avoid the hassles of lost items or postal delays.
– The calculations of the tax will be done automatically.
– Corrections of minor mistakes can be corrected faster making the tax filing task easier.
It is important to file the self-assessment tax return properly as per HRMC guidelines. However, considering all the given criteria, it can be a little hectic work for any person. Also, you might feel an extra burden apart from you to maintain this task. So, outsourcing this work to an expert individual and agency can be beneficial. Their expertise can be helpful to do all self-assessment tax returns accurately.
Meru Accounting provides self-assessment tax return filing services in the UK as per HRMC rules. Meru Accounting is a well-known agency that provides different accounting services across the globe.
