Self Assessment Tax
What is Self Assessment Tax?
Self Assessment is the system launched by HMRC in 1997 to collect Income Tax. When launched the Self Assessment system was heralded as a great advance in personal taxation. However, in practice, it has proved difficult to administer and costly for individuals who make errors or submit their returns after the Self Assessment deadline.
In the tax year, 2016-17 over 330,000 people were issued with tax penalties by HMRC, a rise of approximately 14% on the previous tax year.
How a Self Assessment accountant can help
Whilst HMRC previously promoted Self Assessment with the ‘Tax needn’t be taxing’ campaign the simple fact is that unless you are tax savvy:
- your tax return may not be compliant,
- you may run the risk of penalties if you miss your deadline; and,
- you may miss out on tax opportunities that could mean you pay less tax
If you are confused about Self Assessment Tax call one of our tax advisors for a free initial consultation.
Frequently asked questions
Do I need to submit a Self Assessment Tax return?
You will need to submit a tax return if, in the last tax year (6 April to 5 April) you were:
- Self-employed as a sole trader with earnings in excess of £1000; or,
- A partner in a business partnership
I am employed do I need to complete a Self Assessment Tax return?
If your only income is through your wages or pension, you would typically be exempt from submitting a Self Assessment Tax return. Instead, your tax contributions would be processed via the PAYE (Pay as You Earn) system and your tax and National Insurance contributions would be collected and submitted by your employer.
However, you would need to complete a Self-Assessment form if you are an employee or a pensioner with annual income of £100,000 or more, or if your income was over £50,000 and you, or your partner, claimed Child Benefit.
You will also need to complete a Self Assessment tax return should you have other sources of untaxed income including:
- Money made from renting out a property
- Tips and commissions
- Income from savings, investments and dividends of £10,000 or more
- If you have Capital Gains Tax (CGT) to declare on sale of assets such as property or shares
- Foreign Income
- Money earned from cryptocurrency exchanges
You can use the HMRC Self Assessment tax tool if you unsure whether you need to submit a return of not. However, this does not provide you with professional advice on the best ways to plan your tax affairs and mitigate your tax payments. Therefore, we always recommend seeking professional advice.
How we can help
At McCabe Ford Williams, our tax accountants and tax advisors have been helping our clients to keep more of what they earn since 1936.
We can save you time and worry by preparing the computations and completing your self assessment return for you. We can also act as your agent, dealing directly with the H M Revenue & Customs on your behalf and can act for you in the event of any self assessment enquiry.
Our Tax advisors will also:
- Help you to fully understand your tax liabilities
- Ensure you are paying the right amount of tax and assist you with your tax planning
- Advise you on tax mitigation to ensure you only pay your fair share of tax
- Ensure you remain compliant
- Process your tax returns on time
- Help you to claim any tax refunds
- Hep to protect you from a tax investigation from HMRC with our MFW Tax Investigation service
Since 1936, we have been helping our clients to keep more of what they earn. Trust us to help you too. For more help contact your local MFW office and book a free initial consultation with one of our team.
For more details of our range of business and personal tax services visit the tax area of our website.