The self assessment tax-paying services

The self-assessment filing of tax return is mandatory every business venture, regardless of whether they are small, medium or large sized. Tax is filed annually by HMRC and to check that the erring bodies are hired. Filing tax is a legal obligation that every business venture should abide by. The HMRC also offers tax breaks to loyal business houses. The tax breaks are necessary for every venture, and all the business should try to get in the tax break program and help them outgrow you. The complexity of having a self assessment is the amount of income one gets and the income sources that is attached with it. The whole tax payment issue is very complicated and they should be attained to a professional rather than going ahead and conducting the job all by self.

Few things you need to check before hiring a self assessment tax-payer:

Professionalism: While hiring a professional self assessment tax payer, you need to be very aware of the tax payers company, know the previous company’s feedback back about them.

Affordability: It is very important to keep a check on the price and only hire someone the company can afford. Going overboard with the price and not having an effective rate will lead your company towards nowhere. The better services are expensive, but it is not worth it if the company does not profit.

Clear Vision: One needs to have a clear vision about the financial year, you need to know when the payment was made as well the receipt was there a clown. Make sure that you know it is an income generated business venture. You need some time to differentiate things that is a direct outcome of the business. Do not get confused and blur the boundaries.

The quality of the service is very important while trying to find a self assessment service than to check on the service charges. Tax-paying is a legal obligation and it should be done consulting with a professional if you do not have much experience in this genre.

 

All that you need to know about UK Self Assessment Tax Return

Most of the tax-payers based out of UK have their tax collected through Pay as You Earn Scheme. Although this is the most effortless and effortless way of tax collecting not all tax-payers comes under its stretch. PAYE schemes are effective only for those tax-payers with full-time employment and recover their taxes through their employment. These schemes cannot recover tax from people who earn from different sources and this is where Self Assessment Tax Return comes into play. If you live in UK and are supposed to file a self assessment tax return every year this blog can help you learn and understand the implications of this tax in a lucid manner.

Foremost, you need to be registered at HMRC before you can send out your for self-assessment tax return. During your maiden registration you will receive a Unique Taxpayer Reference number or UTR. Usually in the month of April or May you will receive a letter from HMRC to send out your tax return. There is a deadline for sending return and you could be penalised if you miss it. The tax year for 2013 to 2014 ends on 5^th April and the deadline for filing your paper tax return is midnight 31^th October, 2014. If you miss it you can still have it done online on or before 31^st January 2015 which is also the last date for final payment of any due tax.

Now that you are aware of the deadlines and have already started taking measures to avoid legal prosecution, wait awhile and ensure whether you actually fall in that category that must send self assessment tax return. If you are the director of a company or a partner in a business partnership you do fall in that group. In case you are a self employed or sole trader you also have to pay this tax within deadline to avoid penalty. You have to pay £100 for 1 day late for up to 3 months and the amount keeps increasing the longer you delay.

You can only avoid penalties, fines and interests if you can produce a reasonable excuse. According to The HMRC it can be serious troubles at home of work. Serious troubles at home can be any illness causing people hospitalized or family bereavement and by trouble at work HMRC can accept IT issue, breakdown of computer while preparing a return online. But lame excuses like ‘forgetting the deadline’ ‘finding online system too hard’ and ‘blind dependence on accountant’ will not save you from paying penalties.

Even though you can arrange all data and submit the tax return online through the portal of HMRC but it is always better to outsource the work to an accountant who is adept in handling self assessment tax returns.

 

Tips to complete self assessment tax return

Are you one amongst several UK tax payers? If yes, you need to complete self assessment tax return every year. Most tax payers in UK get tax collected at the very source through Pay As You Earn Scheme where the employers deduct the right amount of tax as well as national insurance every month. The employers are obliged to pay this amount to the HMRC every month. They can also be paid every three months depending upon size.

PAYE schemes are the easiest as well as fastest way of tax collection. However, this scheme works only when the tax payers are full time employed and the tax that is due through this employment. PAYE schemes do not recover tax that is due on income made from other sources. This is exactly the place where self assessment tax comes in.

Here are some common reasons behind the need to complete self assessment tax return:

• Earnings made from property or land
• If you are the Director of a company or self employed
• Earning from pension
• Income tax payer
• Have income from investment that are not taxed at the source
• Income acquired of foreign sources
• Income subject to capital tax gain

  There can be several reliefs as well that can be claimed and these are included in tax return. You can collect all essential data and submit them online through the HMRC website but this is not easy. Another way of getting things done is by hiring a self assessment tax return agent who will handle personal tax affairs and general accountancy as well. They can provide excellent value for money as compared to the traditional high street agents.