Self Assessment Tax Return – File Your Tax Now

Self-Assessment Tax Return : The freedom of working for yourself is great, and there is the potential for big money.

But that also?means you?have to?take responsibility for your own taxes such as submitting your?self-assessment tax return.

This?can seem very daunting and?will?probably?take you hours,?so we are?here to make your life as easy as possible.??This?guide?will help?you when?the?tax return?filing?time comes around.

What?is?self-assessment Tax Return?

Self?assessment?is HMRC’s way of finding out how much income tax and National Insurance?a self-employed?need to pay.

You might need to complete a?Self Assessment?return even if you are not self-employed.

For instance, if you earn money from renting out a property or have significant income from investments, savings, and dividends.

Employees automatically have income tax deducted from their income through the PAYE system, but this?doesn’t?happen for self-employed people.

Self assessment?involves completing a?tax return (or Form SA100) and is usually done online, though it is still possible to file in the?old-fashioned?way with a paper form. Submission deadlines are different for paper and online versions.

More than 10.2 million?people?were required to file their 2020-21 tax returns by?23.59 on 31 January?2022. More than 630,000 submitted?their?tax returns on?31 January 2022; the peak hour for?the?filing was between?16:00?to?16:59?when 52,475?tax returns were?filed.

Last year,?20,947?registered self-employed people completed?their?tax?returns from?23:00?to?23:59 on?Friday, 31 January 2022.

More than 12.2m people are expected to file a self assessment tax return this year.

Who?needs to complete the?self assessment?tax return?

A?self assessment?tax return ?must be completed by any individual paid outside of the PAYE scheme or has received additional untaxed income on top of their PAYE.

In most cases, full-time employees pay tax and National Insurance before?receiving?their monthly salary and will not be required to pay additional tax.

This means they would not be required to file an annual tax return.

You will generally be required to submit a tax return if any of the following applies:

• You are a director of a company
• If you have received income from land or property in the UK
• If you have?capital gains tax?to pay
• If you have received taxable foreign income?over?￡300 a year
• If you have received income from a trust or settlement
• If your annual income exceeds ￡100,000
• If you receive ￡10,000 or more from taxed savings and investments
• If you are higher rate taxpayer and receive ￡2,500 or more from untaxed savings and investments
• If your income is over ￡50,000 and you or your partner have received?child benefit payments

Steps?to?fill in your?self assessment?tax return

Step 1: Register?for?the?self assessment

If you are filing the?self-assessment tax return for the first time, you must first register with?the?HMRC.

You can register online?using?HMRC’s website .

Whether you are?self-employed, registering a partnership, or not self-employed, the process will vary, so?choose?an?option that applies to you?carefully.

Step 2: Get?your?UTR?number and set up a government gateway account.

As soon as you register for?the?self-assessment, you will automatically be issued a?Unique tax reference (UTR)?number.

If you?cannot?find it, you can also call HMRC on 0300 200 3310 to ask about?the?UTR number.

You’ll?require?some information on hand for security questions, such as your personal details and National Insurance number.

To submit?the?self assessment?tax return online , you must set up a government gateway account.

You can?set up?your?government gateway?account by?following?the?letter’s instructions?containing your UTR?number.

Once you have?set up the account,?you will get?the?activation code in the mail,?which?will complete?the?set-up of?the?gateway account.

This?entire?process could take up to 20 days, so?make?sure not to leave it until the last minute.

Step 3: Make?sure?that?you have?the correct information gathered

Prior to starting out, you will?need to make sure you have?the?following information on hand:

• Unique Taxpayer Reference (UTR)
• National Insurance number
• Records of expenses relating to self-employment
• A total of any?property income?you’ve?received
• Certificates detailing interest you have?received from your bank
• Any?overseas?income you?received
• Any income you have?received as part of a partnership (one partner should also file a tax?return for the partnership as a?whole)
• Information about any dividends?you?received
• All taxable benefits you have?received from the?state
• All capital gains you have?received by disposing of assets
• Details?about any Gift Aid you have received (you can claim tax back for this –?visit?GOV.UK for more information
• Details of pension contributions, as you may be able to claim some of this money back
• Details of any tax payments you have already made this year
• Details of the income earned from employment which may include your P60, your P11D form, P45 if you left during the tax year, detailing any benefits and expenses you have received that weren’t processed through a payroll system, or your P2 coding notice, which explains your PAYE tax code.

Step 4: Prepare the tax return

Once you have all the relevant income information from step 4 above, start completing?self assessment?tax return.?You will see a page?similar to?the one below. Start completing the sections one after another.

Fill out your?self-assessment tax return? slowly and carefully.

You can always save?it and come back to it if you are?doing it online, so?there’s?no need to?hurry.

Step?5: Submit?the tax return

Once you have filled in the above information, your tax liability will be automatically computed.

Also,?check back through all the information you have?entered before you press Submit.

You can edit every detail?at any point before?submitting.

You will?get a confirmation and code number once?you submit it.

It is?best to keep a note of this number as a reference for the future.

Step 6: Pay the tax bill

After you submit your tax return,?it?is time to pay?the amount you owe. It is vital that you pay tax?before the deadline.?Late payments usually attract interest and penalties.

You can pay?a?tax bill by debit card, bank transfer, Bacs, or direct debit.

Step?7: Keep?a?record of your tax return

It is always good to keep a?record of your?tax?returns.

If?HMRC chooses to investigate your tax return, you will?need to provide your receipts, and bank statements as proof.

If you are?a landlord or self-employed,?you should keep the records for at least five years and 10 months.

What?are deadlines for?self assessment?tax year?2021/22?

What?happens if you miss tax return deadline?

In case?you miss the?tax return deadline ?you will?have to pay?the?penalty, which is ￡100 if you are?up to?3?months late.

You will?be charged an even higher fee if you are?later than?3?months,?with interest on top – so do not?miss it!

In some?cases, you can appeal the?penalty if you have a reasonable excuse for missing the deadline but never rely on this appeal being successful.

Excuses that may prove successful include the recent death of a partner or an unexpectedly long stay in?the?hospital, but they?are assessed on a case-by-case basis.

FAQ‘s

Frequently asked?questions?on?self assessment?tax return:

Q:?Where can I find the?self assessment?tax return form??

You can download the?tax return from the?HMRC website. Alternatively, you can?call?the?HMRC?on 0300 200 3610?to?request?a blank tax return form?with guidance notes.

Q: How?do I send the?self assessment?tax return to HMRC??

93% of registered?self assessment?people submit their tax return online.?You?can submit?tax return?via?HMRC website.

You?will need to post your completed paper tax return to HMRC on?the?following address

Send?your paper tax return?to:

Q:?How do I pay for?self assessment?tax bill??

You can no longer pay at the Post Office.

Online telephone banking (faster payments), CHAPS,?by debit or corporate card online, at your bank or building society, BACS, by direct debit or by cheque through the post.

If the payment deadline falls on a weekend or bank holiday, ensure your payment reaches HMRC on the last working day before (unless you’re paying by Faster Payments or by debit or credit card).

Q: Can I check online if my payment has been received???

Yes, you can check on HMRC online account and it should show as?‘paid’?in 3-5 working days.

If you made the payment via?post?then you can add a letter with your payment to HMRC requesting a?receipt. You should receive this via post.

Q: What if I am struggling to pay my?self assessment?tax bill??

You can contact HMRC?on?0300 200 3822?and make a payment proposal. This is another?way of paying?tax?bill quarterly or monthly. HMRC will check this?case by case?basis and can ask for further information.

Q: Can I amend my tax return after submitting it??

If you notice an error, you can correct your tax return for up to a year after the filing deadline via the?HMRC online portal. After one year, you must write to HMRC to explain your circumstances and request a change.

For paper tax returns, you will need to download a new return and post it to HMRC with ‘Amended’ written on each corrected page.