If you’re a UK resident who receives self-employment income, then you may need to do your taxes on the self-assessment basis rather than using the calendar year filing option. This is something that many small business owners aren’t aware of, especially because it can be very confusing to understand at first glance. Don’t worry, though; this article will explain everything you need to know about self assessment tax, how it affects you, and what you need to do in order to make sure your tax returns are filed properly.

1) Give An Accountant Time

The deadline for filing a self-assessment tax return is 31 January. To avoid missing it, give your accountant as much time as possible so they can prepare and file all your paperwork.

2) Understand How It Affects You

Self-assessment tax is a personal assessment for taxpayers who are required to complete their own tax returns. It requires taxpayers to declare their taxable income themselves rather than have it calculated by HMRC. Self-assessment tax applies when your total income is greater than £100,000, or if you’re self-employed.

3) Understand How It Works

If you’re a sole trader or a director of a limited company, it might be time for your annual self-assessment tax return. This year, HMRC have added four extra questions in their online return, so it’s essential that you understand how they work before completing your form. If you don’t do these questions right, you could end up paying even more tax than you need to.

4) Act Early If Necessary

To avoid a hefty fine or even a criminal record, it’s important to submit your Self-Assessment tax return as soon as possible if you’re running late. Accountants Bangor can assist with filing your return promptly and efficiently.

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