Although employees pay their income tax and National Insurance Contributions under the PAYE (‘Pay As You Earn’) tax system (where the tax is automatically deducted at source from their gross income by their employer), million of other individuals have to complete a yearly tax return via self assessment.
This is because HMRC request that that they file a Self Assessment tax return, so they can actually ‘self assess’ the amount of income tax and National Insurance Contributions they will need to pay. If this is your case, completing a tax return becomes a mandatory requirement that cannot be ignored as hefty penalties are automatically applied by HMRC when tax returns are not completed within stipulated deadlines.
The Self Assessment tax period starts from 6th April and ends 5th April of the following year. This period is known as "tax year". Tax payers who are requested by HMRC to complete a tax return need to declare ALL sources of income for the period. In turn, HMRC calculate their tax liability (also commonly known as "tax bill") - the amount tax payers are due to pay.
After 5th April individuals can submit their Self Assessment tax returns to HMRC for approval by the Inspector of Taxes. The deadline for submitting a tax return in electronic format (‘online’) is January 31st of the following year.
Due to changes to their personal circumstances, each year thousands of individuals need to register for Self Assessment with HMRC i.e. They may have just started a business or become self employed; they may receive rental income from a property they own; they earn over £100,000 per annum; they are a director of a company; etc… It is THEIR responsibility to register for Self Assessment with HMRC as soon as possible. Once they are registered, HMRC will issue them with a Unique Tax Reference (UTR) number.
Due to the complexity of the tax system and the time-consuming task this might represent (computing all receipts; invoices; etc…), many individuals choose to engage the services of a tax agent to help them fill in a tax return on their behalf under Self Assessment.
Trusting your tax affairs with a reputable agent not only saves time, it also potentially could save you money, as mistakes could be costly. Tax agents are familiar with HMRC rules and regulations, they are up to date with the tax breaks that may be available to you and ultimately they know how to minimise the amount of tax you pay within the remit of the law. In most cases the cost of using an agent is quickly offset by the amount you could save in tax. In some cases, especially CIS workers or landlords who are part of the Non Resident Landlord (NRL) scheme, they may even be due a large tax refund.
Our software is fully integrated with HMRC’s own online system, which means that we are able to process tax returns the same day that you confirm the figures we calculated for you, which we will then use when we submit your tax return.
You could be entitled to a significant Tax refund. Apply online now or call our experts on 01634 812 228.