If you were a freelancer or ran your own company in fiscal year 2011-2012, then you need to submit an online self assessment tax return to the HM Revenue and Customs by 31 January 2013, since the deadline for paper submissions passed on 31 October 2012. The penalty for missing the deadline is a £100 fine for one day late and you may be charged additional interest on late payments. If you do not complete your tax return by 28th February 2013, you’ll also need to pay a 5% surcharge based on the value of the tax you owe.
The basic information for filing a self assessment tax return is as follows:
1. The self-employed income for the tax year
2. Bank interest received
3. Employment income earned during the year
4. Property income and allowable expenses
5. Expenses incurred during the year
6. Any tax and any national insurance that has already been deducted from your income
As a self-employed person, you will be interested in what business-related expenses you can claim and how to reduce the tax you need to pay. If you want to claim expenses, you need to make sure you keep all your receipts. When you complete your tax return at the end of the year, you declare all your income and all your expenses. You must keep accurate records by law for five years and ten months after the end of the tax year that the figures related to. You also must be able to provide evidence that the expenses were actually incurred when the HM Revenue and Customs requests you to do so. If you don’t keep the records that you need to file a tax return, you can be fined up to £3,000.
Although you can fill out your tax return yourself, it can be a long process and if you are not a qualified accountant, it can be difficult to be certain that you are inputting the correct figures. If you do enter incorrect figures you may be liable for the interest on the underpaid tax and other costly penalties. Our professional team at Belsize Accountancy is experienced in tax returns and will process your self assessment tax return as soon as possible to ensure you beat the January deadline. We will provide advice regarding the information that you can claim as work-related expenses and strive to manage your taxes effectively.
We offer an excellent service, filing tax returns for many self-employed clients including limited company contractors, thereby enabling them to focus on running their own business. The 31 January 2013 deadline for April 2012 self assessment tax returns is now fast approaching. You will need to start preparing for this now. Please contact Belsize Accountancy on 0207 043 0052 for more advice.