A Self-Assessment tax return can look very daunting.

However, if you’re prepared, organised and have specialist help from a self-assessment accountant on hand, it’s a lot simpler than it may seem.

At Gorilla Accounting, we understand that you lead a busy life. Running your business will take up a huge amount of your time already, so having one less thing to worry about and taken care of by an expert who you trust can be a huge help.

Submitting tax returns can be stressful, worrying and time-consuming when you are a landlord, contractor or freelancer. Many, especially if you’ve only recently set up as a freelancer, find the process confusing and it can be a minefield ensuring that you’re paying the correct amount of tax.

As expert self-assessment accountants, we have a wealth of experience handling self-employed tax returns. We can offer you the peace of mind of knowing that your HMRC self-assessment will always be completed with the correct information and in a timely manner.

Our specialist self-assessment accountants will complete your HMRC tax return and advise you on any tax reliefs that may be available to you. We can also liaise with you on any queries, submit your tax return to HMRC and confirm the amount to be paid and when it’s due, saving you time, stress and money.

What are the Self-Assessment deadlines?

You submit tax returns for tax years, not calendar years. And you do this in arrears. It’s worth speaking to your accountant now and making sure you have everything together, as the deadline to register for self-assessment is fast approaching:

For the 2021/22 tax year – running 6 April 2021 to 5 April 2022 – you would:

–        need to register for Self-Assessment by 5th October 2022 if you’ve never submitted a return before

–        submit your return by midnight 31st October 2022 if filing a paper tax return

–        submit your return by midnight 31 January 2023 if filing online

–        pay the tax you owe by midnight 31 January 2023.

If you fail to meet one or more of these deadlines, you might be charged a penalty fee and interest on late payments.

Do You Need to Submit a Self-Assessment Tax Return?

If you’re self-employed, the director of a limited company or have received income during the tax year upon which tax is due, you have to complete and submit an HMRC tax return.

More specifically, you may have to complete your tax return online if you fall into one of the following categories:

–        Self-employed (sole trader) who has earned more than £1,000 in the tax year

–        A partner in a business partnership

–        Receive rental income

–        Receive income from savings, investments and dividends

–        Wanting to claim certain tax reliefs

–        Receive child benefit and your or your partner’s income was over £50,000

–        Have sold assets in the tax year, such as additional properties or shares

–        PAYE income of above £100K

Buy-to-let landlords and capital gains tax rules

It has recently been reported that many landlords are considering selling their rental property due to increased regulation, agent fees and rising costs. Because of this, capital gains tax paid by landlords is on the rise.

The latest figures from HMRC show that CGT revenue for 2020-21 was 42% higher than the previous year. HMRC received over £14 billion in CGT during this period, which was paid by around 325,000 taxpayers, up from 55,000 in 2019-20.

One of the main reasons why there is a rise in CGT revenue is because landlords of buy-to-let property are selling up, because of reasons including:

–        increased regulation

–        rising costs

–        concerns over CGT rates being brought in line with income tax rates

If you’re a buy-to-let landlord, it’s worth noting that HMRC has recently confirmed the latest capital gains tax rules ahead of the next self-assessment deadline.

Landlords who sell a property are required to file a capital gains tax property return, as well as reporting the asset disposal on their Self-Assessment.

In April 2020, the government made it compulsory for landlords to report the sale of properties. They must then also pay the capital gains tax they owe within 30 days of completion. However, as part of 2021’s Autumn Budget, that period was doubled to 60 days.

This now allows landlords ‘sufficient time’ to report and pay what they owe.

According to the Institute of Chartered Accountants, buy-to-let investors who have recently sold a property and reported it on their Self-Assessment should file a paper capital gains tax return as soon as possible.

It’s not possible to submit a CGT return for a property sale online after it’s already been included on a Self-Assessment return therefore it is important for landlords to file their CGT return, known as a ‘PPD’, before their Self-Assessment.

However, landlords won’t need to file a PPD if their Self-Assessment is submitted within 60 days of the completion of the property sale.

What happens if you don’t report or pay your CGT on time?

If you sell a property and fail to report and pay your CGT bill within 60 days of the transaction completing, you could receive a late filing penalty. This is calculated based on how much you missed the deadline by.

–        Up to six months: £100 penalty

–        More than 6 months: A further £300 or 5% of any tax due (whichever is higher)

–        More than 12 months: A further penalty of £300 or 5% of any tax due (whichever is higher)

Why Choose Gorilla for Self-Assessment Accounting Services?

Tax legislation is constantly changing and keeping up with current regulations and understanding returns is increasingly difficult. In order to meet the tax return deadline, landlords, contractors and freelancers need to be able to ensure that complex tax returns are submitted correctly.

Gorilla Accounting has many decades of experience across different industry sectors, allowing us to offer a dedicated self-assessment service that will handle everything for you. We can help regardless of your location in the UK, as we would just require copies of your records.

If you are looking for a new accountant to help with self-assessment and would like to join Gorilla, you can contact us today to learn more about how we can help with your tax returns.