The only things that we can be sure of, are death and taxes. It was true then and it’s not stopped being true since and over and above that, it’s never going to be the most fun you could have. Laws are changing all the time and it can be hard to keep abreast with what you need to do and when and this is confusing enough in a private capacity, much more so when you have a business. So let’s break down some of the most important bits that you need to keep aware of, to survive the Great British Tax Season.
MIDNIGHT, 31ST OCTOBER 2021
The date that you cannot forget if you’re planning on doing a self-assessment online, or a paper assessment and if you want to avoid paying a £150 late filing penalty, best you make sure you get it in on time. You’ll pay more and accumulate interest on late payments besides so if you’re not the kind that knows how to do this on your own, make sure that you find some help, in good time.
WHAT DO YOU NEED TO KNOW ABOUT SELF-ASSESSMENT?
First off, before you go ahead and file a return, you first need to know if you need to file one at all. Generally, if you derive your income from just wages or a salary, you won’t need to do so. But if you claim a tax benefit or derive an income as a self-employed “sole trader”, or if you earn only commission or tips then you’ll need to submit one too.
You will need to register before you can file a self-assessment and there are different documents that you may need like receipts or salary slips, and to find more information and some help on the matter, click here.
AND IF YOU HAVE A BUSINESS?
As a business or a self-employed person, you’ll have additional responsibilities under the tax assessment system and this is where you may very well want to consider a tax consultant or agency to do the paperwork and filing for you. There are different records that you need to keep and you need to ensure accurate capture of expenses, income and all outgoings and which of these are deductible.
If you need to file a confirmation statement and it’s late, you’ll need to know how to file a late confirmation statement and again, this is something you’re probably going to want some help with.
It’s important that when you seek outside assistance for your tax purposes whether for an individual or business, that you appoint an agency or person of repute with a proven track record in providing tax advisory services. Ignorance of the law is not a defence.
There is a lot of guidance and information online that you can avail yourself of to help you navigate this oh so very exciting time of year and this post certainly doesn’t have enough space to get really stuck into the topic, but you need not be afraid or intimidated. HMRC has evolved in leaps and bounds in recent years and they’ve made the process as simple as possible but much like many Brits, even business owners don’t always know enough about the FTSE100, many still don’t know enough, about tax compliance.