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January 2021 may seem a while away but we recommended starting to prepare now, getting your taxes in order sooner rather than later will allow you to budget for the costs accordingly.
Who needs to complete a Self-Assessment?
You’ll need to complete a self-assessment if you’re a director of a limited company or self-employed (and earned more than £1,000 in the last tax year). You will also need to complete a tax return if you are a partner in a business partnership. If your only income is from a wage or pension you would not normally need to complete one.
What to include in a tax return?
Essentially you need to document all your income sources from the tax year. If you have received dividend payments or income from other investments or assets (such as a rental property) this will need to be detailed also. If you are a company director and your only income is a salary from your business, that’s what should be recorded on the tax return.
Other things that need to be included on your tax return are pension contributions, state benefits, capital gains and any lump sums received.
Tips to help you:
Prepare your paperwork! Prepare everything listed on the paperwork required from your accountant, the items on this list are essential to submitting a comprehensive return. If there are any documents missing then create an inventory list of those and email as much detail as possible to your accountant as early as possible. Check everything once, twice, thrice!Once you have the paperwork in order check everything through to ensure noobvious mistakes are included (such as paperwork from the incorrect tax year).
Investing the time to re-check your submission now is a great idea to avoid panic setting in closer to the deadline. Submit as early as you can.January 2021 may seem a while away but we recommended starting to prepare now, getting your taxes in order sooner rather than later will allow you to budget for the costs accordingly.
If you have any questions regarding your self-assessment then please feel free to get in touch with our sister company 2020 Accountancy for hassle-free accountancy solutions for contractors operating through a limited company.