How To Complete Your Self-Assessment Tax Form
In this article, we will talk about taxes – this hot topic needs extra attention as now just because you have missed a payment you will have to meet automatically a financial penalty which increases with time. Self-assessment applies to landlords and self-employed – they have complex income and tax affairs. London flooring professionals point out that since 2014 those on more than 50,000 that receive child benefit will need to complete a return. The ones with simple affairs and that have no other forms of taxable income do not need to comply with that. Yet, if this changes they must inform HMRC. You have the legal obligation to complete your tax return when you receive it.
- For everyone’s convenience, HMRC executes most of its work online. All you have to do is to register online and fill in your UTR number (a 10-digit unique tax reference number). The process will take some time to activate and do not wait until just before the filing deadline.
- When you complete your tax return, you should have in mind that the process requires information from a couple of different sources – P2, P11D, P45, P60, employers reference, insurance number and details on trading income, investments, interest, foreign income, taxable benefits and any capital gains from the sale of property and shares (assets). The usual tax return is 8 pages long but there is shorter form of 4 pages long (for the taxpayers with very simple affairs).
- London flooring specialists explain that you should consider the tax reliefs that are available. If you want to apply for such you should provide the necessary records to back these claims up. You can use reliefs on monies you`ve approved government small business investment vehicles such as venture capital trusts and enterprise investment schemes or you`ve paid into a pension, any donations to charities if made, the marriage allowance and the blind person`s allowance. Again, flooring experts in London say that you need records to back these claims up.
- Another critical issue to have in mind is following the dates. For example, the important dates for self-assessment regime are 31 January, 31 October and 31 July. There are two ways to submit your tax return needs – if it is on paper it should be submitted by 31 October and if it is submitted online it should be done by 31 January the following year. You know that the tax you pay depends on your profits – it is divided into two periods from January to July and July to January and there is a balancing payment on 31 January after each tax year.
- You can check your self-assessment online account. Do not forget that you should complete and submit a tax return even if there is no tax due as there will be an automatic 100-pound penalty to people that do not meet the deadline for submitting taxes. The penalty rises each day and additional interests of 5% will be applied. It can reach and exceed over £900.
Now that you know the basis of taxes you should be careful to follow the procedure carefully so you do not miss a stage of it.
Inspired by www.contractflooringjournal.co.uk