Self-Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Tax is usually deducted automatically from wages, pensions and savings. If you have relatively straightforward tax affairs and already pay tax through PAYE (Pay As You Earn) you probably won't need to complete a tax return. But, if you have income from self-employment or above a certain level, you may need to complete a tax return.

You have to complete Self-Assessment Tax Return if you are:

1)     self-employed (including being a member of a partnership) and earned more than £1,000

2)     a company director (if he received Dividends)

3)     a minister of religion (any faith)

4)     if you receive Income above a certain level from savings, investment or property

5)     if you receive income from overseas

6)     if your annual income is £ 100,000 or more

7)     If you're employed and want to claim for expenses or professional subscriptions of £2,500 or more.

8)     If you have income tax to pay. For example if the amount can't be collected through your tax code or by a voluntary payment.

9)     You have capital gains tax to pay

10)   Your income for your partners was over £50,000 and one of you claimed child Benefit

SELF-ASSESSMENT TAX RETURN FOR PEOPLE WORKING UNDER CONSTRUCTION INDUSTRY SCHEME (CIS)

The Construction Industry Scheme (CIS) is a tax deduction scheme which involves tax being deducted at source from payments which relate to construction work.

Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor's payments and pass it to HM Revenue and Customs (HMRC).

If you work as a subcontractor under the Construction Industry Scheme (CIS) you must register with HM Revenue & Customs (HMRC) before you start working.

The deduction at a higher rate of 30% is taken from the payments if you haven't registered for the CIS or the contractor could not verify you through the system.

The standard deduction rate of 20% applies if you have registered for Construction Industry Scheme (CIS) and the contractor has verified your details successfully. These deductions count as advance payments towards your tax and National Insurance bill.

The contractors will give you monthly a payment and deduction statement to help with your accounting.

At the end of tax year you have to send the Self-Assessment Tax Return, so that HM Revenue and Customs (HMRC) will work out your tax and National Insurance bill and take off any deductions made by contractors.

If you owe tax after tax return, you will need to pay it by 31 January following the end of the tax year.

If you have overpaid taxes, HMRC will pay the money back.

Our team of experienced accountants can help you to prepare your Self-Assessment Tax Return and receive a refund from HM Revenue and Customs in a short period of time.

Contact us now on 07789758177 / 02082211165 for further information and advice regarding Self-Assessment Tax Return.

SELF-ASSESSMENT PENALTIES

PENALTY FOR LATE SUBMISSION OF SELF-ASSESSMENT TAX RETURN

You'll get a penalty if you miss the deadline of submitting your tax return on time.

You’ll get a penalty of £100 if your tax return is up to 3 months late.

After the period of 3 months late, you'll get more penalties, as follows:

 - for the next 90 days the penalty is £10 a day - £900

 - after 6 months late - £300

 - after 12 months late - £300

The total penalties to pay are £1600 (£100+£900+£300+£300).

You’ll also be charged interest on late payments.

However, if there is a reasonable excuse, you can appeal against a penalty. 

PENALTY FOR LATE PAYMENT OF SELF-ASSESSMENT TAX BILL

You have to pay interest if you're late of paying your tax bill. 

If you can't pay before the deadline (31 January), you should contact HMRC as soon as possible and set up a payment plan to pay in instalments.

SELF-ASSESSMENT SECURITY CHECK

HMRC may check your tax affairs to make sure you’re paying the right amount. This can happen if you’re an individual taxpayer or if you run a business.

Usually HM Revenue and Customs will write what they want to check. This could be your Self-Assessment Tax return and you should send back all the relevant documentation that is requested.

The security check can last up to 2 months or more. It will end faster if HMRC receives all the necessary information regarding your taxes.

Get in touch with our office now to find out how our reliable team of professional tax advisers and accountants can help you with your tax investigation, penalty or any other dispute with HMRC.