A Brief Account of Self Assessment Tax Return

A self assessment tax return is one of the most popular systems followed and used by the HMRC to collect Income Tax and National Insurance in the UK. In case of salaried employees, tax is generally deducted by default from the pensions, savings and wages. However, in the case of individuals with additional income from either self-employed work or freelance, what they need is a self assessment tax return and they need to report about it themselves. And they have the provision of submitting the return either online or by post.

In the nutshell, self assessment is a self explanatory term that denotes, an individual assesses his or her own earnings and expenses before sending directly to HMRC what the person owes.

What is needed to complete a self assessment tax return?
There are several key details that one will need to include while completing a self-assessment tax return. The individual has to input all the necessary key financial information in a proper manner so that it is possible for the HMRC to calculate the chargeable tax on the earnings.

And when it comes to providing the details about the income, one needs to include several financial information, such as:

  • Charitable donations those are eligible for tax relief
  • P60 information
  • Your 10-digit Unique Taxpayer Reference
  • The National Insurance number
  • Records and documents in support of any expenses related to self-employment
  • Details about the untaxed income from self-employment, dividends as well as interest on shares

The taxpayer is supposed to collate all the information by time and produce the same by the deadline while submitting the tax return.

While submitting the tax return, it is imperative to maintain the records of taxable income and gains. Throughout, the taxpayers need to set themselves up for self assessment tax return, by maintaining a copy and backup of invoices of every expense incurred and every documented gains in the form of bank statements, payslips, or rental income (in case of owners renting out their properties).

Besides, it is also important to maintain a track of every other business-related expenses and assets in possession of the individual. For instance, it may include the transportation logs used by the company vehicles for business related trips.

How long can the Self Assessment Tax Records Be Retained?
As and when an individual supports his or her self assessment tax return with property or self employed income, it is required to keep the updated records for at least 12 months.

For further details, you can get in touch with us at AccountableUK. Our experts are available at 02380 576807 / 07957 461339 for you to contact and clear all your queries. They are also available for a meeting if that may meet your needs. You can also write to us at kamal@accountableuk.com for further queries.