A Self Assessment is the method that we use to do personal tax returns in the UK. When you earn untaxed income, you have to declare it to HMRC yourself. You then submit a Self Assessment tax return via an SA100 form, detailing all your income and expenses. You pay income tax on your profits.
There are various reasons that you might have earned untaxed income. Here are a few of them:
You’re taxed on income that you earn each tax year. This runs from 6th April – 5th April every year, but you can choose to calculate it based on any 12 month period. If you do decide to do this, we’d recommend getting in touch with an accountant as this method can be more complicated – and you want to avoid getting unnecessary penalties.
You have to pay your tax bill by 31st January, the year following the tax period you’re paying for. For income earned between 6th April 2022 – 5th April 2023, for instance, you have to pay your bill by 31st January 2024.
You can pay your tax bill in various ways:
E.g. you earn over £100,000
E.g. you want to claim a tax relief
Of course! We advise that you start a comprehensive spreadsheet to keep track of your taxable income and relevant expenses throughout the year in order to make your tax return more straightforward. This can be done on an Excel spreadsheet or Google sheet to keep things simple! Contact our team for more advice today!
There’s a lot to navigate with your accounts, so let our team help you get set up! Our experts are well versed in Self Assessments, Capital Gains Tax and accounting, so contact us today.