For many people who earn a salary across the UK, you will be charged tax on a monthly basis through the PAYE (pay as you earn) scheme. This means that you’re safe in terms of your tax obligations as these are taken care of by your employer. However, the case is different for other individuals who earn income in other ways. These individuals need to fill out what is called a self-assessment tax and submit it to HMRC every year. To find out more about whether you are one of those individuals and what requirements you should meet when submitting your self-assessment tax return, take a look below.
What is a self-assessment?
Despite the name, a self-assessment is something that you can get help with through a self-assessment tax service.
In its simplest form, with a self-assessment tax, you are required to submit details about how much income you earned over the past financial year. This will enable HMRC to calculate how much tax you owe or you are owed accordingly and so that HMRC can better calculate your national insurance (NI) contributions.
Who is eligible for self-assessment tax?
Self-assessment tax is a part of the UK’s tax system that is generally reserved for the following groups of people:
- If you are self-employed
- If you are a director or a partner of a limited company
- If you earn income from rent paid to you on property/ies that you own
- If you earn dividends from any of your investments
- If you are drawing a pension while you continue to earn
- If you have claimed child benefits and earn above a certain threshold
- And others
When is the deadline for submitting your self-assessment tax?
In the UK, the self-assessment tax deadline is 31 January each year. If you are struggling to prepare all the documentation required on time, it’s highly advisable that you speak to a specialist from experienced tax accountants in London. This is because if you miss the deadline, you may be subject to a £100 fixed penalty. And once the assessment is filed with HMRC, you need to wait for your tax bill to see how much you owe. You should then pay this amount in the time frame that HMRC has indicated. And it’s worth remembering that you will not be able to pay using your credit card or pay at a Post Office any longer.
When you need reliable outsourced bookkeeping services in London
When you need a reliable bookkeeping service in London for your self-assessment tax needs or any other accounting-related requirements, you’re in good hands with Tax Navigator. Our experienced and helpful team is highly knowledgeable and professional when it comes to giving you expert advice and offering you an efficient service. To find out how we can help you with your self-assessment tax or any other accounting-related query, simply get in touch with us. We are more than happy to be of service!