Making Paying Your Tax Simple
META DESC: Filing a Self Assessment Tax Return can be a time-consuming task. Linda Carr Accountants are here to help.
Our Peterborough accountants can help you to complete your 2021/22 Self Assessment Tax Return.
What Is A Self-Assessment?
First things first, what is a Self Assessment Tax Return? Self Assessment Tax Return is the system that HM Revenue and Customs ( HMRC ) uses to collect Income Tax. Self Assessment Tax Return itself isn’t a form of tax – it’s just the process of calculating your income and then paying what you owe. So, who needs to file a Self Assessment Tax Return?
- you are self-employed
- you are a partner in a business
- you are a company director and have income on which tax is due that is not taxed under Pay As You Earn (PAYE)
- you have property income
- you want to claim tax relief on employment expenses
- you have to pay a tax charge on your child benefit
- you have untaxed savings income
- you have capital gains tax to pay which hasn’t already been paid in-year
The above isn’t an exhaustive list, and you can earn below certain thresholds before you have to file a Self Assessment Tax Return and pay tax. We’re here to provide advice, and we always recommend getting in touch with HMRC if you have any questions about your tax affairs.
A Stressful Process
Completing your Self Assessment Tax Return can be stressful, no matter how many times you have been through the process. Submitting incorrect information could lead to you paying too much tax or even on the wrong side of the law, so you need to take your time and ensure that every applicable section is completed. If you have multiple income streams, this process can be even more complicated and time-consuming. With the January 31st deadline fast approaching too, leaving it late only adds to that stress!
If you do not file your Self Assessment Tax Return by the January 31st deadline, you will be subjected to penalties. These are as follows:
- £100. This is applied as soon as the return is late, so post-January 31st.
- £10 per day. This is charged once the return is 3 months late, for a maximum of 90 days.
- £300 or 5% of the tax due (whichever is higher). This is applied if the form is 6 months late.
- A further £300 or 5% of the tax due (whichever is higher). This is applied if the form is 12 months late.
Even if you do not owe any tax, you will stay have to pay whatever penalties you have accrued. Remember – Self Assessment Tax Return isn’t a tax in itself, but the information to see what you owe. The penalties are there because by not filing, you are withholding information from HMRC. There are separate penalties for any income tax that you do not pay.
We’re Here To Help
If you are feeling overwhelmed by the thought of completing your tax return, we are here to help. Our team of accountants have years of experience when it comes to helping customers in Peterborough to file their returns on time. Whether you are navigating this process for the first time or just can’t face doing it again, we’re very happy to do that hard work so that you do not have to.
To find out more about us and our Self Assessment Tax Return services, please get in touch with a member of our friendly team today.