The Self-Assessment system has been in place now for over 10 years.
The “Self” in Self-Assessment basically means that it is your responsibility to:
- Make sure your returns are correct
- Pay the right amount of tax on time
- Let HMRC know if you need to complete a tax return.
There are many reasons why you may be required to complete a tax return. The most common being the receipt of income from self-employment. However, there are many other reasons why you may be required to complete a tax return, such as:
- Receipt of income from property
- Capital gains on the sale of certain assets (such as second homes / stocks and shares)
- Receipt of significant investment income (dividends / bank interest etc)
- Receipt of foreign income
- The level of your income means that you pay tax at the higher rate
- You are a company director
Whatever the reason, it is vital that your tax return is accurate and is submitted on time together with any tax due.
The costs of getting it wrong include:
- £100 late filing penalty
- Interest and surcharges for late payment of tax
- Penalties for incorrect returns (up to 100% of the under declared tax)
It is also possible that you may lose certain tax reliefs if your return is not completed correctly.
We can help you to manage the self-assessment process smoothly by:
- Ensuring that your returns are accurate and filed on-time
- Providing you with plenty of notice of any tax payments due
- Ensuring that you claim any valuable tax reliefs you may be entitled to
- Keeping you up to date with any changes that may affect you
Please contact us now if:
- You are currently issued with a tax return and would like some assistance completing it
- You are unsure if you are required to complete a tax return and would like some advice