You tell HMRC about your taxable income and gains for a tax year by completing a Self-Assessment tax return. But how do you know what is taxable, if expenses are deductible or what additional information should be reported? We ask the right questions, claim the relevant reliefs and calculate the correct tax due. Free up your time for what you get a kick out of and leave the geeky calculations to us.
It’s good to talk. Self-assessment keeps you doing just that, by communicating with HMRC. With all the complexities of personal tax laws, why not use our expertise to calculate your taxable gains and income for the past year? We keep our finger on the pulse, to ensure that tax efficiency runs in tandem with your long-term goals.
Self Assessment is needed if you are an individual and you have the following income or capital gains:
You can of course choose to complete your own self assessment tax return, but you might find that using our team to help you will give you access to some particular perks.
Self Assessment isn’t a tax; it's a the form HMRC want you to complete to communicate the taxes you owe. The concept behind Self Assessment is that you take responsibility of completing a tax return annually if necessary, ensuring you settle any tax owed for that tax year. It falls on you to inform HM Revenue & Customs (HMRC) if you believe a tax return is required.
When you undertake a Self Assessment tax return, you comprehensively detail all your taxable income and capital gains. Additionally, you claim any entitled tax allowances or reliefs directly on the tax return and inform them of any additional information to support your assessment.
A tax year is from 6th April to 5th April, you will need to register by the 5th October following the tax year in which you are required to report income or capital gains.
Details of self-employment income and expenses to work out your trading profit or loss for the year. Details of property income and expenses to work out your rental profit or loss for the year. Employment and pensions income information, including forms P60, P11D and P45 from any jobs you have had. Interest certificates from banks or building societies. Details of pension contributions made to relief at source schemes. Details of any chargeable capital gains made in the year
If you are self-employed or receive rental income, maintaining records supporting your tax return is imperative, and these need to be retained for a period of five years following the 31 January deadline.
Conversely, if you aren't self-employed, generate no income from property, and adhere to the filing deadline, record-keeping is only required for 12 months post the same deadline. However, if you file your taxes late, the record-keeping period extends to 15 months.
The choice is yours in terms of record-keeping format—whether on paper or in digital form. It's worth noting that HMRC is in the process of implementing a requirement to retain digital records, particularly for activities like trading and property income. Anticipating this change now positions you for a seamless transition in the future.
Interested? Contact us to see what W Advisory can do for you. We’re ready to make your finances fighting fit.
