A Helping Hand With Your Self-Assessment Tax Return
Fri 18th Aug 2017
What is a self-assessment tax return (SATR)?
A SATR is a form on which you:
• report details of any income received, and any capital gains if appropriate
• claim tax allowances and tax reliefs.
HM Revenue and Customs (HMRC) may request that you complete a SATR to report income received in the tax year. The tax year runs from 6 April one year to 5 April the next. If you receive a request to complete a tax return, the law says you must complete and submit the return.
HMRC uses the information on your SATR to work out your tax bill or work out whether you are due a tax refund.
We understand that filling out a SATR can be complicated and there are questions that you just may not know how to answer. That’s why at 2020 Accountancy we offer specialised advice and guidance to contractors and freelancers to help you complete your SATR.
If you are employed or receive your wages through Pay As You Earn (PAYE), you would not usually be required to file a SATR. With this in mind, self-assessment does not apply to everyone. There is often a lot of communication around this time of year when people are talking about tax filing however you will normally only be required to fill out the form if you fall into the following categories during the last tax year (source: https://www.gov.uk ):
• you were self-employed
• you got £2,500 or more in untaxed income, for example from tips or renting out a property
• your income from savings or investments was £10,000 or more before tax
• your income from dividends from shares 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
• 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
• 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
If you would like some help in making this process as easy and less complicated as possible for you as a contractor, 2020 Accountancy can help. If you would like them to help you complete your form and act as an accountant on your behalf, complete this questionnaire on their website. By filling out this questionnaire you are providing details to enable them to prepare your personal tax return and ensure that your details are correct before you file to the HMRC.
If you’d like advice prior to completing your form, please contact 2020 Accountancy and speak to one of their experts who can guide you accordingly.