£225 + VAT for an annual self-assessment for sole traders*
*if you have done your own bookkeeping and have all your receipts and paperwork ready
Self-assessment is used by HMRC to calculate the amount of income tax that you owe.
If you are employed, tax is usually deducted by your employer from your wages via PAYE (i.e. Pay As You Earn), or automatically from your pension or savings. However, you need to report any other income that you receive in the form of a self-assessment tax return once per year.
Business owners who work as self-employed and have not incorporated their business need to submit a self-assessment income tax return to HMRC every year.
You have the choice of completing your tax return yourself. The downside in doing so is that you may not be aware of how to claim your full expenses or any reliefs. It always pays to have a second pair of eyes on your tax return in case of any errors. If you choose to have me process and file your self-assessment tax return, you will benefit from my professional expertise and your tax return will be completed correctly. What is even more important is that you will not have to wrestle with your tax return yourself and waste your valuable time doing so.
Paper self-assessment returns are still an option, though HMRC is rolling out MTD (Making Tax Digital). If you still want to post your self-assessment to HMRC, then you have to download the Form SA100 from the HMRC website for completion and return. However, most of the tax payers are filing their self-assessment returns online. For online returns you need to register for self-assessment with HMRC.
The deadlines for self-assessment returns are 31 October in the year the tax year ends for paper returns, and 31 January in the following year for online returns. For the tax year ending 5th April 2022, the deadline for paper returns is 31st October 2022, and 31st January 2023 for online returns.
Fines for late returns start at £100 for being a day late, rising to £1000 plus additional costs if your return is over 6 months late.
At LAS Accounting Ltd, we file tax returns, including self-assessment returns, for a large number of clients. We apply our professional experience to minimise our clients’ tax burden, and we ensure returns are filed on time and avoid penalties. This frees up your time for your business, and relieves you of the headaches that completing a tax return can sometimes cause.
While most salary income streams are taxed through the PAYE system, all and any income that are not taxed at source should be declared in Self-Assessment returns. The threshold for compulsory self-assessment filing is £1000 untaxed annual income. While HMRC believes that the Self-Assessment Returns process has been made as simple as possible, you will be surprised to know that this is where most people make mistakes. And these are very expensive mistakes !
We can help you appreciate what your individual personal income tax situation is, what income streams are to be taxed and what expenses are allowed to be deducted from your taxable income. We handle all of your paperwork for annual returns locally. We make sure you do not have to worry about deadlines and that there are no costly mistakes, overlooked opportunities or miscalculations.
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