Tax return season is almost upon us. The dreaded deadline looms where we have to get ready to pay up to the tax man. If you are wondering whether you are required to fill out a tax return, wonder no more. Let’s go through in detail about who and why you are required to fill out a tax return.
Who needs to fill out a return?
If you are self employed, in a partnership or run a limited company, you need to submit a return. It’s quite simple really, if you are an employee, then your boss has the responsibility to liaise with the tax man. However, if you are in charge of your own affairs (for instance, you are registered for self assessment, have your own Unique Tax Reference (UTR) etc) then you are where the buck stops in terms of tax.
What if I have stopped being self employed?
If you were self employed, but now hold an employed position or perhaps are taking some time off, you may still need to fill in a return. The tax year runs from April to April, so let’s say for instance you were self employed from from April 2015 until February 2016, then stopped. You will be required to fill out a tax return at the end of January 2017 for the time you were self employed. Make sure you inform HMRC that you are stopping self assessment so you are not liable for any more tax returns.
In some cases, you may be entitled to a tax rebate if you have overpaid tax too, which is an extra incentive to get it done!
How do I do it?
Filling out a tax return form is very easy. All that is required is your accounts for the year, a computer and 20 minutes of your time. However, some people find the process a little difficult and time consuming, which is why it can always be a good idea to hire an accountant to take care of any of the stress that you may be feeling.
Steps1) Get your UTR, and sign in to the government gateway2) Calculate all of your income, and deduct from it all of your employment related expenses (check with an accountant, or HMRC as to what exactly you are allowed to claim)3) Fill out the form as instructed via the online portal4) Submit the form5) Pay your calculated amount of tax
What comes next?
If you are going to be registered for self assessment for the foreseeable future, then you are going to have to get used to filling out a yearly tax return. If however you are going to be an employee, there is no need to worry about filling out a return regularly.
To alleviate yourself from any pressure, it is always good advice to seek the help of an accountant near you. In this way, all the paperwork can be submitted on time and in order so that you are left to pay attention to your business.
Nobody likes paying tax, but making sure everything is in the correct order and organized will can lead to great benefits in your business and quality of life!