Frequently Asked Questions

What is Self Assessment?

Self-Assessment involves completing a tax return each year. Self-employed individuals show their income and capital gains (profits on the sale of certain assets) as well as their business related expenses on their tax return declaration and can claim tax allowances or reliefs on their tax return.

What is UTR?

All self-employed registered individuals are issued with a Unique Tax Reference ten digit number (UTR). This can be found on your tax return, most correspondence from HMRC.

How can I get UTR and how long does it take?

UTR is issued by HMRC and it usually takes 4-8 weeks to get one after you first registered self-employed.

Who has to complete annual Tax Return?

An annual tax return must be completed by:

• a self-employed sole trader;
• a company director;
• receiving income from selling or renting out property;
• receiving interest on bank deposits;
• receiving income from any other business transactions

The above is just the list of most common cases when Tax Return has to be submitted. Please contact us for more information.

Can I submit Self Assessment Tax Return myself?

Yes. You can register for HMRC online services for Tax Return or send your paper tax return. https://www.gov.uk/log-in-file-self-assessment-tax-return

HMRC offers information and help on Tax Return submission and calculations: https://www.gov.uk/government/collections/self-assessment-helpsheets-main-self-assessment-tax-return

What is the deadline to submit Tax Return?

The deadline to submit Tax Return online is 31st of January, paper return deadline is 31st of October.

What are the Self-Assessment payment deadlines?

The balance of any tax owed, must be paid by 31st of January following the end of the tax year. 31st of July is the date when individuals may have to pay the second 'payment on account' towards their next tax bill.

What will happen if I fail to submit my Tax Return? Are there any penalties?

The period for claiming a tax refund currently is 4 years. Tax refund is also possible for those no longer residing in the UK.

How can I get my tax refund?

From the 31st of January 2012, the HMRC tightened their penalties for late Tax Return submissions and eliminated the possibility of penalty cancelation. If you fail to submit your Tax Return:

• One day late – the penalty will be £100;
• More than 3 months - £10 for each day together with the sum, mentioned above;
• More than 6 months - £300 or 5% of the tax amount, depends which one is higher, together with the sums, mentioned above.

These penalties apply:

• Even if your income for the last tax year was very low and you do not owe any taxes to HMRC;
• Even if you overpaid taxes and you are entitled to a tax refund.

What will happen if I fail to pay taxes? Are there any penalties?

If you are late paying your income taxes, HMRC will calculate interest on your income taxes you owe.

Shall I keep any documents of my Tax Return?

You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. HM Revenue and Customs (HMRC) may check your records to make sure you’re paying the right amount of tax.

How many years of my previous tax returns can HMRC investigate?

The HMRC has the right to open a tax enquiry within 12 months after the Tax Return submission date. If the HMRC discovers any inaccuracy, the enquiry can be extended up to 6 years. If the HMRC suspects any scam or money laundering, the enquiry can be extended up to 20 years.