Self-Assessment

How our Accountants can help you!

• Do You Need to Submit a Self-Assessment Tax Return?

  For self-employed people, who don’t have their tax deducted as they earn, a self-assessment tax return must be completed to enable HMRC to tax them correctly on their earnings. The importance of maintaining good financial records cannot be overstated, from small business owners to company directors.

  There are multiple reasons and circumstances that a tax return may be required are as follows:

  1. You are Director of a limited company & receiving untaxed income
  2. You are self-employed or a sole trader
  3. You are a Partner in a partnership
  4. You are employed and earning over £100,000
  5. You are earning over £50,000 and receiving child benefit
  6. You are earning income that hasn’t been taxed
  7. You are receiving property income
  8. You have large amounts of savings or investment income
  9. You own land or property that is being let
  10. You have income from overseas
  11. You have sold or given an asset away (such as a holiday home, some shares or crypto)
• Why Should You Hire A Self Assessment Accountant

  There are several reasons why you should hire a self-assessment accountant:

  1. Expertise: Self-assessment accountants have the knowledge and expertise to ensure that your tax return is completed accurately and on time, minimizing the risk of penalties and fines.
  2. Time-saving: Preparing a self-assessment tax return can be time-consuming and complex. Hiring a self-assessment accountant can save you time and energy, allowing you to focus on running your business.
  3. Tax planning: Self-assessment accountants can provide advice on tax-efficient ways to structure your business and identify and claim all relevant tax reliefs and allowances.
  4. Dealing with HMRC: Self-assessment accountants have the experience and knowledge to deal with HM Revenue & Customs on your behalf, and can help you understand your tax liability and how to pay it.
  5. Ongoing support: A self-assessment accountant can provide ongoing support and advice throughout the year, ensuring that you are always up-to-date with the latest tax laws and regulations.
  6. Peace of mind: Hiring a self-assessment accountant can give you peace of mind, knowing that your tax affairs are in safe hands.
  7. Cost-effective: Hiring a self-assessment accountant can be cost-effective in the long run, as they can help you save money through tax planning and identifying potential savings.

  At MJ Kane Accountants, our team of self-assessment experts have the experience and knowledge to ensure that your self-assessment is completed accurately and on time, leaving you with peace of mind and allowing you to focus on growing your business.

• What’s included with Our Self Assessment Accountant Service?

  Our services include:

  • Preparation and submission of self-assessment tax returns
  • Advice on tax-efficient ways to structure your business
  • Identifying and claiming all relevant tax reliefs and allowances
  • Helping you understand your tax liability and how to pay it
  • Dealing with HM Revenue & Customs on your behalf
  • Providing ongoing support and advice throughout the year

  At MJ Kane Accountants, we pride ourselves on providing high-quality, personalized service that is tailored to meet the unique needs of our clients. Whether you’re a small business owner, a self-employed individual, or a company, we have the expertise and experience to help you navigate the self-assessment process with confidence.

• What Do I Pay Taxes On?

  Self-Assessment income tax is paid on any income you have received that is not automatically taxed at source. This includes:

  • Income from self-employment, such as profits from a business you run
  • Rental income from property
  • Tips, commission and bonuses
  • Dividends from shares
  • Income from savings and investments
  • Income from foreign sources
  • Income from trusts and estates

  If you are a company director, you will also need to pay Self-Assessment income tax on any salary or dividends you receive from the company.

  It’s important to note that you can claim expenses against your income to reduce the amount of tax you need to pay. This may include expenses related to your self-employment, such as equipment and materials, or expenses related to renting out property, such as repairs and maintenance.

  It’s recommended to consult with an accountant to help you understand your tax liability and ensure that you are aware of all the expenses that you are eligible to claim, to reduce your tax bill.

• When Do I Pay Income Tax?

  Self-Assessment tax returns must be filed with HM Revenue and Customs (HMRC) by 31st January following the end of the tax year. However, the payment of the tax due is not due until 31st January as well, but you have the option to make payments on account, which are payments that you make towards your next year’s tax bill.

  There are two payment on account deadlines:

  1. 31st July: Half of the previous year’s tax bill is due by this date.
  2. 31st January: The final payment, which is the remaining balance of the previous year’s tax bill plus the first payment on account for the current tax year, is due by this date.

  It’s important to note that if you fail to make payments on account on time, you may be subject to late payment penalties. Additionally, if you fail to file your Self Assessment tax return on time, you may be subject to fines.

  It’s recommended to consult with an accountant to help you understand your tax liability, make payments on account, and file your Self-Assessment tax return on time, to avoid any penalties and fines.

• What types of businesses do MJ Kane Accountants serve?

  At MJ Kane Accountants, we serve a wide range of businesses, some of which include:

  1. Small Businesses: We understand the unique challenges that small businesses face, and our team of experts can provide customized accounting services to help you navigate the complexities of running a small business.
  2. Self-Employed Individuals: Whether you are a freelancer, contractor or running a small business, our team can help you with all aspects of self-assessment, from preparing and filing your tax returns to providing ongoing support and advice.
  3. Startups: Starting a new business can be overwhelming, and our team can help you with everything from business planning and forecasting to bookkeeping and tax compliance.
  4. Companies: We also offer accounting services to companies of all sizes, from small businesses to large corporations. Our team can help you with everything from financial reporting and tax compliance to business planning and forecasting.
  5. Sole traders : we provide services to help you with all aspects of accounting, including bookkeeping, tax compliance, and financial planning.

  We pride ourselves on providing high-quality, personalized service that is tailored to meet the unique needs of our clients. Our team of experts is always available to answer any questions you may have and help you navigate the complexities of running a business.

• I am a Sole Trader, do I need to complete a Self Assessment?

  As a sole trader, you are required to complete a self-assessment tax return annually to report your income and expenses to HM Revenue & Customs (HMRC). Self-assessment is a way for HMRC to calculate how much tax you owe on your business income.

  You will need to register for self-assessment with HMRC if you haven’t already done so, and then submit a tax return by the deadline, typically 31st January following the end of the tax year.

  You will need to keep records of your income and expenses to complete your self-assessment tax return. These records will be used to calculate your profit or loss and to determine your tax liability. You will also need to report any other income you have received, such as rental income or dividends from investments.

  As a Sole trader, you will be responsible for paying income tax and National Insurance contributions on your profits, as well as VAT if your turnover exceeds the VAT threshold.

  It is highly recommended to hire an accountant to help you with self-assessment, as they have the knowledge and expertise to ensure that your tax return is completed accurately and on time, minimizing the risk of penalties and fines.

• I am a Partner in a partnership, do I need to complete a Self Assessment?

  Yes, if you are a partnership, you will need to complete a self-assessment tax return each year, regardless of whether or not the partnership made a profit. The self-assessment tax return for partnerships is known as a partnership tax return.

  The partnership is not a separate legal entity and therefore does not pay tax on its income, instead each partner is liable to pay tax on their share of the partnership’s profits.

  As a partnership, you will need to provide information such as the partnership’s income and expenses, as well as the share of profits allocated to each partner. This information is used to calculate each partner’s individual tax liability.

  It’s essential to keep accurate records of your business transactions throughout the year, and to seek advice from an accountant to ensure that your partnership tax return is completed correctly and on time.

  At MJ Kane Accountants, our team of experts has the experience and knowledge to help you navigate the complexities of completing a partnership self-assessment tax return, ensuring that it is completed accurately and on time, and giving you peace of mind.

• I am a Director of a limited company, do I need to complete a Self Assessment?

  As a director of a limited company, you are considered to be an employee of the company and will receive a salary and/or dividends. In this case, you will need to complete a Self Assessment tax return in order to declare your income from the company and pay tax on it.

  Additionally, if you are a director of a limited company, you will need to submit a Company Tax Return (CT600) on behalf of the company, which will report the company’s financial information and calculate its corporation tax liability.

  It’s important to note that the deadlines for submitting Self Assessment and CT600 are different, Self-Assessment tax returns must be filed with HM Revenue and Customs (HMRC) by 31st January following the end of the tax year. Whereas the Company Tax Return must be filed with Companies House and HMRC 12 months after the end of the accounting period.

  It’s recommended to consult with our accountants as they can provide guidance on how to complete these returns and ensure that everything is done correctly and on time to avoid any penalties and fines.

• How Long Do I Keep Self Assessment Tax Records For In The UK

  In the UK, the general rule is that you must keep records for at least six years after the end of the tax year to which they relate. This applies to all types of records, including those used to prepare your Self Assessment tax return, such as invoices, receipts, bank statements, and records of any expenses you have claimed.

  For example, if you submit a Self Assessment tax return for the tax year 2020-2021, you would need to keep your records until at least 31st January 2028.

  It’s important to note that there are some exceptions to this rule. For example, if you have claimed capital allowances or made a loss, you will need to keep your records for longer. In some cases, you may need to keep records for up to 22 years.

  It’s recommended to consult with an accountant as they can provide guidance on how long you need to keep your records for and help you organize and store them properly, to ensure that you have everything you need in case of an HM Revenue and Customs (HMRC) inquiry.

  Additionally, if you are a business owner, it’s good practice to keep records that are relevant to your business, such as receipts, invoices and bank statements, for at least six years as well.