Do You Need to Submit a Self-Assessment Tax Return?
People that are employed by a business or organisation usually have their tax deducted at source through Pay As You Earn (PAYE). This means that the employer deducts the tax from their employee’s salaries and automatically pays it to HMRC. Therefore employees are not usually required to complete a self-assessment tax return.
But for the majority of self-employed people who don’t have their tax deducted at source, a self-assessment tax return must be completed to enable HMRC to tax them correctly on their earnings.
You will need to submit an HM Revenue & Customs tax return if you fall into one of the below categories:
- Director of a limited company & receiving untaxed income
- Self-employed
- Employed and earning over £100,000
- Earning over £50,000 and receiving child benefit
- Earning income that hasn’t been taxed
- Receiving property income
More specifically, you may have to complete your tax return online using the HMRC website self-assessment tax return feature if you fall into one of the following categories:
- Self-employed (sole trader) who has earned more than £1,000 in the tax year (before taking off anything you can claim tax relief on)
- A partner in a business partnership
- Received rental income
- Received income from savings, investments and dividends
- Wanting to claim certain tax reliefs
- Received child benefit and you or your partner’s income was over £50,000
- Have sold assets in the tax year, such as additional properties, shares or crypto
- PAYE income above £100K
Why do you need to complete a Self-Assessment tax return?
HMRC uses your self-assessment tax return to calculate your tax liabilities each year. This includes any amounts you have overpaid, and therefore whether a rebate is due, and any amounts you have underpaid.
They will calculate your total income using the below information submitted in your self-assessment tax return:
- Annual turnover from your business during the tax year
- Interest earned on money in your business bank account
- Any additional income earned either working for an employer during or before when you became self-employed (this will be detailed in a P60 or P45 if applicable)
- Income made from renting property that you own plus other expenses related to this income
- Tax that has been paid already as a deduction from your income
- Any allowable expenses (as determined by HMRC) incurred by your business
- Details of National Insurance contributions paid as a Sole-trader
The amount payable in tax is then derived from these calculations.
Self-Assessment Tax Return Accountants for Contractors and Freelancers
At Gorilla Accounting, we understand that as a small business owner you will be very busy and that your time is precious. Your focus should be on your day-to-day and growing your business rather than struggling with a self-assessment tax return.
The last thing you want is to waste time wondering how to complete and submit your tax return and risk getting it wrong. After all, completing it isn’t straightforward and it can be a lengthy and frustrating process.
So if you want to ensure you are paying the correct amount of tax, you should consult a specialist tax return accountant for help.
As expert self-assessment accountants, Gorilla Accounting have a wealth of experience in handling tax returns for self-employed people. We give you peace of mind knowing that your HMRC self-assessment will always be completed and submitted with the correct information and on time.
Let Gorilla Accounting do all the work and save you time, stress and money.
If you’re looking for a self-assessment accountant, our qualified, expert team are self-assessment specialists. They will complete your HMRC tax return and advise you on minimising tax liability to ensure that your business is as tax-efficient as possible.
They will liaise with you on any queries, submit your tax return to HMRC and confirm the amount to be paid and when it’s due.
Why Choose Gorilla for Self Assessment Accounting Services?
Tax legislation is dynamic and constantly changing, making keeping up with current regulations and understanding returns increasingly difficult for self-employed people.
But in order to meet the tax return deadline, contractors and freelancers need to be able to ensure that complex tax returns are submitted correctly. Otherwise, serious fines and penalties for late filing or payment can be incurred.
If your self-assessment tax return becomes overdue, HMRC will charge you with a late filing penalty starting at £100. This charge will increase depending on how long it takes to complete and file your late submission, and the costs can quickly mount up. HMRC will rarely waive penalties for late submissions irrespective of whether any tax is due.
Even innocent errors on a submission can be a red flag to HMRC which can bring you unwanted attention and potentially lead to a lengthy and time-consuming investigation.
It’s crucial therefore, that your submission is correct and on time.
This is where Gorilla Accounting come in.
Our accountants have decades of experience across many different industry sectors. This allows us to offer a dedicated self-assessment tax return service that will handle everything for you, including filing your tax return with HMRC on your behalf.
If you’re looking for an accountant for tax return purposes, we can save you a lot of time, money and worry. We give you peace of mind that your tax affairs are taken care of. As we’re online tax accountants, we can help you regardless of your location in the UK as we just require copies of your records to complete your return.
Got any questions? Contact us today and speak to our friendly team to learn more about how we can help with your tax returns.
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