As the tax year finishes on the 5th of April, and the new one begins one day later, it is again that time of the year when self-employed have to get their paperwork together and fill out their Self Assessment Tax Returns.

Don’t know how? Short in time? Get in touch – Right Accounts is here to help!

What is a Self Assessment Tax Return?

It is HMRC‘s system used to collect Income Tax.

Tax is usually deducted automatically from wages, pensions and savings, however every year around 11 million people have to fill out the Self Assessment Tax Return.

The tax year runs from the 6th April - 5th April. Your accounts need to be calculated according to these dates. You can start submitting your tax return on the first day of the next tax year, thus 6th April.

You’ll need to send a tax return if, in the last tax year:

• you were self-employed - you can deduct allowable expenses
• you got £2,500 or more in untaxed income, for example from renting out a property or savings and investments - contact the helpline if it was less than £2,500
• your savings or investment income was £10,000 or more before tax
• you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
• you were a company director - unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car
• your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
• you had income from abroad that you needed to pay tax on
• you lived abroad and had a UK income
• you got dividends from shares and you’re a higher or additional rate taxpayer - but if you don’t need to send a return for any other reason, contact the helpline instead
• your income was over £100,000
• you were a trustee of a trust or registered pension scheme
• you had a P800 from HMRC saying you didn’t pay enough tax last year - and you didn’t pay what you owe through your tax code or with a voluntary payment