Personal Tax

Overview

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.

Following can send a Tax return through self assessment if in last tax year ( 6^th April to 5^th April) you are

Self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
A partner in a business partnership

YOU DON’T NEED TO SEND TAX RETURN IF

But you may need to send one if you have any other untaxed income, such as:

claim some Income Tax reliefs
prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance

➢ If your income (or your partner’s, if you have one) was over £50,000, you may need to send a return and pay the High Income Child Benefit Charge

You need to register if you did not send a tax return last year. There are different ways to register if

registering a partner or partnership

You can send your return through

You must Commercial Software/ Paper Form to send returns IF YOU ARE:

for a partnership
for a trust and estate
if you get income from a trust
if you lived abroad as a non-resident
if you’re a Lloyd’s underwriter
if you’re a religious minister
to report profits made on selling or disposing of more than one asset (‘chargeable gains’)

HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the deadline.

The last tax year started on 6 April 2020 and ended on 5 April 2021.

Self Assessment	Deadline
Register for Self Assessment if you’re self–employed or a sole trader, not self–employed, or registering a partner or partnership	5 October 2021

your bill (known as ‘payments on account’).

You’ll usually pay a penalty if you’re late. You can appeal against a penalty if you have a reasonable excuse.

£100 if your tax return is up to 3 months late ➢ More Penalty if later than Three Months ➢ interest on late payments.
Estimate your penalty for Self Assessment tax returns more than 3 months late, and late payments.
You can appeal against a penalty if you have a reasonable excuse.
All partners can be charged a penalty if a partnership tax return is late.

If you need help with Self Assessment, you can:

appoint someone to fill in and send your tax return, for example an accountant (e.g ELITE ACCOUNTAX)

✓ Should you wish to speak with Us in relation to above feel free to contact us

66 Seymour Grove Old Trafford Manchester, M16 0LN