If you are self-employed and earning more than £1,000, a partner in a partnership business, a company director or if you have other income from savings, investments or property, you will need to file a Self Assessment Tax Return (SA). The following article will show you how to reduce corporate taxes.
The SA is not a tax itself, it is a way of calculating and paying tax. If you fit into one of the categories above you are wholly responsible for completing a SA each year and for paying any tax due. To be clear, HMRC will not prompt you to complete a tax return. If HMRC do however send you a SA to complete, this must be completed and returned by the due date and not be ignored unless you have agreed with HMRC directly to cancel it.
What is included in a tax return and what paperwork do I need?
SAs include all your income and any capital gains, such as from investments or from sale of properties.
Any tax allowances and tax reliefs you may be eligible for, can also be included on your SA.
HMRC may request evidence and records on review of completed SAs, and so it is a legal requirement to keep relevant income and capital gains records for at least 22 months after the end of each tax year.
If for any reason you submit your tax return late, you will need to keep your records for at least 15 months from the date you send your tax return.
Deadline for completion
The tax year for 2019/2020 runs from 6th April 2019 to 5th April 2020, and is the same format each tax year.
If you are needing to complete a SA for the first time, you are required to inform HMRC by 5th October in the current tax year. For example, for 2019/2020 tax returns, you need to inform HMRC by 5th October 2019.
You can complete your SA in paper form or online. If in paper form, the deadline is 31st October. If there is a delay of submission, there will be a penalty charged imposed by HMRC, even if you have no tax to pay for the tax year of submission.
If you submit your SA online, the deadline for submission is 31 January. Again, if the deadline is missed, a penalty charge will be made by HMRC even if there is no tax to pay.
It is worth noting that if there are any errors noted on your SA after submission, either paper form or online version, you can amend your SAs up to 12 months after the 31 January deadline.
Payment on accounts?
If you are required to make payments on account, you will have additional dates to consider to ensure you are paying your tax on time to HMRC. Please see full details on payment on accounts here.
Need help completing your tax return?
You can find more information on the HMRC website here. We recommend you work with a Self Assessment Tax Return Accountant to help file your returns.
Southside Accountants provide accountant services, including tax return services, to small businesses in the UK. Please contact us for a free no obligation quote.