What is self-assessment?
It is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. If you need to submit a self assessment, you fill it in after the end of the tax year (5 April) it applies to. It is also referred to as a tax return.
Why use Cashtrak to submit your tax return?
Lots of reasons!
Submitting (filing) your tax return is time consuming, instructing Cashtrak to do this for you frees up your precious time. Most of us our time poor and by allowing us to support you with this, you will be able to focus on what matters to you.
- We have years of experience
- We are governed by the Institute of Certified Bookkeepers (the largest bookkeeping institute in the world which promotes and maintains the standards of the profession – click here for more information)
- We support you through the process and give clear instructions of how much you owe and how to pay as well as reviewing your account between tax deadlines to check you are up-to-date
- We provide advice, guidance and tips on the process
- You can send us your paperwork whenever is convenient to you – every week if you want which takes the pain out of finding the paperwork once a year
- We can provide guidance with expenses
- All of our clients love our hassle free service and come back year after year
- Price starts from £150 + VAT
Who must send a tax return?
You must send a tax return if, in the last tax year (6 April to 5 April), you were:
- self-employed as a ‘sole trader’ and earned more than £1,000
- a partner in a business partnership
You will not usually need to send a return if your only income is from your wages or pension. But you may need to send one if you have any other untaxed income, such as:
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income
‘Sending’ can be done by online (web/ internet) submission Click here to check if you need to submit a tax return.
Other reasons for sending a return
You can choose to fill in a tax return to:
- claim some Income Tax reliefs – click here for an explanation of these
- prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance
- if you get Child Benefit
- if your income (or your partner’s, if you have one) was over £50,000, you may need to send a return and pay the High Income Child Benefit Charge – click here for more information.
Registering and sending a return
You need to register if you did not send a tax return last year. There are different ways to register if you’re:
- self-employed or a sole trader – click here to register
- not self-employed – click here to register
- registering a partner or partnership – click here to register
You must register as soon as you know you need to submit a tax return.
Sending your return
Once you’ve registered, you can send your tax return online, or use commercial software or paper forms. You then have to pay your bill by the deadline. You can get help filling in your return, you can appoint an agent on your behalf to submit your tax return. This is something Cashtrak can do and have many years experience with many happy clients. You can contact us through the website here or e mail us at firstname.lastname@example.org.
You’ll get a penalty if you need to send a tax return and you miss the tax return deadline for submitting it or paying your bill. HMRC have a tiered fine system, click here for more details.
You can appeal against a penalty if you have a reasonable excuse.
Please note - all partners can be charged a penalty if a partnership tax return is late.
Payment on account
'Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
You have to make 2 payments on account every year unless:
- your last Self Assessment tax bill was less than £1,000
- you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings
Each payment is half your previous year’s tax bill. Payments are due by midnight on 31 January and 31 July.
If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year. Click here for more information.
Further reading: HMRC’s Self Assessment help sheets – click here.