WE ALL NEED A LITTLE HELP WITH OUR FINANCES FROM TIME TO TIME AND NOT ALL FINANCIAL ADVISERS UNDERSTAND THE UNIQUE NEEDS OF CONTRACTORS AND FREELANCERS.
Not everyone is a self-assessment early bird! But don’t stick your head in the sand, it’s not too late to get help.
Who needs to complete a Return?
Here’s a few of the reasons why you may need to complete a Self-Assessment Tax Return;
You're a company director, minister, Lloyd's name or member
You must complete a return if you're any of the following:
- a company director (unless you're a director of a non-profit organisation, for example a charity, and don't receive any payments or benefits)
- a minister of religion (any faith)
- a name or member of Lloyd's
You’re self employed and earn more than £1,000
If you have income in excess of the £1,000 trading allowance you will need to complete a return in order to calculate how much tax is owing
Your annual income is £100,000 or more
If you receive total income of £100,000 or more you'll need to complete a tax return. You may have higher or additional rate tax to pay that hasn't been collected through your tax code.
This applies to Umbrella employees also
You have income from savings, investment or property
If you are an employee or a pensioner and already pay tax through a PAYE code, you can sometimes ask for tax that you owe on income, such as savings and property, to be collected through your code number. You'll need to complete a tax return instead if the income you receive is:
- £10,000 or more from taxed savings and investments
- £2,500 or more from untaxed savings and investments
- £10,000 or more from property (before deducting allowable expenses)
- £2,500 or more from property(after deducting allowable expenses)
If you don't pay tax through a PAYE code you’ll need to complete a tax return if all of the following apply:
- you have income to declare, for example income from savings, trusts or abroad, rental income from land or property
- your total income exceeds your total allowances and reliefs
- you have tax to pay on this income
You need to claim expenses or reliefs
If you're employed and want to claim expenses or professional subscriptions of £2,500 or more, you'll need to complete a tax return. If you want to claim expenses below this amount, you can contact HMRC.
You can only claim certain reliefs, such as Enterprise Investment Scheme relief or relief on Venture Capital Trusts, by completing a tax return.
You or your partner receive Child Benefit and your income is over £50,000
You must complete a tax return if all of the following apply:
- your income is over £50,000 a year
- you live with a partner and your income is higher than theirs
- you or your partner are entitled to receive Child Benefit (or get an equivalent amount from someone who claims Child Benefit for a child who lives with you)
- you jointly decide to keep receiving Child Benefit and pay the new tax charge
You get income from overseas
You must complete a tax return if you have any foreign income that's liable to UK tax.
You have income from trusts, settlements and estates
You must complete a return if you receive income (or are treated as receiving income) on which tax is still due, for example from:
- annual trusts or settlements
- the estate of a deceased person
You have Capital Gains Tax to pay
If you have Capital Gains Tax to pay, for example you've sold, given away or otherwise disposed of an asset such as a holiday home or shares, you'll need to complete a tax return and the Capital Gains Tax pages.
You need to prove you’re self employed
For example to claim Tax-Free Childcare
You want to make voluntary Class 2 National Insurance payments
This would help you qualify for benefits, such as state pensions, jobseekers allowance or maternity allowance.
How we can help?
Umbrella Accountants have a wealth of experience completing and reviewing tax returns and can ease your burden and give you peace of mind that HMRC won’t be chasing you down for further information, or worse, penalties, and interest.
Tougher penalties for late filing of Self-Assessment tax returns means that you need to think about getting your tax return in on time before the penalties start to add up.
We can complete your Self-Assessment Tax Return for you. Or if you prefer, you can prepare your own return and we’ll review it for you at a lower cost.
Our simple tax questionnaire enables you to send us the information we require in a straightforward fashion and we’ll pull together your return and ask you any further questions and then send you the return to review prior to submission to HMRC.
Tax planning & advice
Our team works closely with you and reviews your portal to understand your particular situation so that you receive bespoke advice and solutions tailored to your circumstances.
Along with dealing with your personal and company tax returns on an annual basis, we’ll carry out a full tax review as requested to ensure that you are not missing out on any specific tax breaks or suffering financially as a result of changes in legislation.
We provide specialist tax planning advice if, for example, you are buying or selling an asset, considering letting out a property or moving to, or away from, the UK.
When and how to pay
Important deadlines to remember;
31st October – Last date paper filings for the previous tax year (6th April to 5th April)
31st January – last date for on-line filing and first payment on account due and any balancing payment due
31st July – Second payment on account due
If you complete your Self-Assessment online, you will be given the opportunity to make the Payment on Account at the same time as your balancing payment for the previous tax year. If you file your return online, you will receive a paper bill along with a Bank Giro form that you can use to make a payment.