As a business owner, you are responsible for sending reports about your annual earnings to HMRC. You also need to determine how much tax you must pay. This will be easier when you are being assisted by a qualified self-assessment accountant. Self-assessment is also called ‘tax return form,’ and it requires you to put the source of your earnings. You can file the self-assessment tax return online by January 31 after the tax year-end. You can also have it filed offline by October 31 after the tax year-end. Take note that the year of the tax is from April 6 to April 5 of the following year.
If you are filing online, consider getting the assistance of a self-assessment accountant. That way, you can also get other important information from the HMRC, such as the contributions of NI, state pension, and underpayments. Some tax breaks may become a part of the tax returns, but there is no need to include your earned tax-free income. Filing online is advisable, as it is easier, but remember to file your tax return after doing that, and keep records six years prior, as HMRC can fine you for every incorrect record corresponding to every tax year.
The good self-assessment accountant will make sure that you will not be paying too much tax. Most taxpayers will tend to spend more on taxes because they are not aware of tax laws. At times, they may be working with an under-qualified accountant. Self-assessment accountants can help you resolve those issues by keeping you informed and minimising the guesswork associated with the task.
If you are overpaying taxes, the self-assessment accountant could help transfer assets between spouses for lower income tax, or recommend annual investment allowance for property that needs to be refurbished. They also bring other solutions that may be relevant to your unique situation, such as using ISA allowance, payment of allowance to your children from income that is tax-exempt, and claim expenses for business if you are working from home.