{"id":179,"date":"2023-11-20T03:36:15","date_gmt":"2023-11-20T03:36:15","guid":{"rendered":"https:\/\/cmgaccountant.com\/?page_id=179"},"modified":"2023-11-21T15:33:26","modified_gmt":"2023-11-21T15:33:26","slug":"self-assessment","status":"publish","type":"page","link":"https:\/\/cmgaccountant.com\/index.php\/self-assessment\/","title":{"rendered":"SELF-ASSESSMENT TAX"},"content":{"rendered":"\t\t
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\u00a0Self-assessment tax return<\/strong><\/h3>

Self-employed people usually have multiple sources of income as opposed to people who are employed or getting pensions. Employment income is automatically taxed by a system known as PAYE (Pay as you earn).<\/p>

\u00a0While preparing your self-assessment tax return it is important to account for all income and claims for any reliefs available. The return must be submitted at the end of the tax year which is 5th<\/sup>\u00a0April. HMRC will determine what you need to pay once your self-assessment return has been submitted.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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self-assessment tax return is important<\/h2><\/div><\/div>

Submitting self-assessment tax return is important because failure to submit will result in penalties of \u00a31,800 by HMRC. There may be additional penalties you would have to bear if you do not make the returns on time. If you have received child benefit in the last two years, or if you or your partner\u2019s income was over \u00a350,000 then you must submit the tax return.<\/p>

The penalties by HMRC subject to delays are as follows:<\/strong><\/p>

  • \u00a3100 daily penalty<\/li>
  • \u00a3300 increase in penalty after three months<\/li>
  • Adding 10% of the unpaid tax after six months<\/li>
  • Increase of another 10% of the unpaid tax after twelve months<\/li><\/ul><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    Other income that needs preparation of the tax return include Capital gains, foreign income, rental income, and savings income.<\/strong><\/p>

    1. Capital Gains<\/strong>: It is the increase in the value of capital assets. You must pay tax on the sale of any property within 30 days.<\/li>
    2. Foreign income<\/strong>: Foreign income includes the income you receive for your services or goods in another country. Your foreign income and UK dividends are more than \u00a32,000 then you are liable to pay tax.<\/li>
    3. Rental Income<\/strong>: It is the payment that you are receiving for occupation or any use of the property. If your income is between \u00a32,500 to \u00a39,999 then you are liable to pay tax on the rental income.<\/li>
    4. Savings Income<\/strong>: If your income is more than \u00a35,000 then you are liable to pay tax on it.<\/li><\/ol><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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      What do you need to include in your tax return?<\/h2><\/div><\/div>

      Before you decide to submit the tax return you should determine if you are required to do so by HMRC. You can determine your liability from the list given below:<\/strong><\/p>