The Process of Filling a Self Assessment Tax Return.
In as much as you are able to read and master all the guidelines with respect to how you can fill your tax assessment form, you will discover that it is a pretty smooth and fast process that you can do in a matter if minutes. Basically this tax assessment return is meant for students who makes money through self employment. Study have shown that about eight percent of the student have a unique business that they do.
When you work for your self you decide to make big money and have total control of your finances. The more you work hard, the more you make more money to your self. But even as you have the total control of your finances, you do not have the control over your tax and this is the reason why you need to submit your self assessment tax return every January each year.
This may seems like a very complicated work that will take the whole of your time but if you go through this write up critically, you wil discover that it is a small work that can be done within minutes.
Why You Need to Fill Your Self Assessment Tax Return
The following are some of the basic reasons that will warrant you to fill your self assessment tax reform.
a) If you have earned more than 2,500 pounds in an untaxed income.
b) If your self employment incomes is above £1,000.
c) If the savings you have from investment is more than £10,000, then you will need to fill your self assessment tax return.
d) If you are a director of a company except maybe it is a charitable or non profit company.
e) When you are a trustee of a trust or registered pension scheme.
f) When your taxable income is above £100,000.
Voluntarily you can as well fill your self assessment tax return because this may qualify you to receive the state pension.
Ways to Submit Tax Return to HRMC.
The HRMC is a non ministerial department of the UK government that is solely incharge of collecting revenue. And the following procedures are required in other to submit your tax return to them.
1. Register with the HMRC. Before you can make any submission of your tax return, it is essential you register your self down, so they whether you are self employed, a partner in a business or maybe non self employed, this registration is just once and after that you can be making your submission every year but in a situation where by you skipped a year without making the submission, then you will have to do the registration again. Upon registration you will receive your Unique Taxpayer Reference UTR which can be use in other to fill and pay your tax. And finally a particular kind of code will be sent to you with the period of 10 workings days and you will use it to activate your account online with 28 days of receiving it.
2. Submit Your Tax Return.National Insurance Number, Unique Taxpayer Reference, Bank Statement and Interest Statement should all be kept ready as they will be use to fill your tax return, and therefore they are always required to be kept in place and never to be misplaced even after use.You may decide to fill the form either online or offline but most importantly is for you to be able to make proper and early submission before the deadline, although online filling seems to be much more easier to complete.
It is very essential to report all your earnings of the previous tax year. The HRMC have alot of guidance and advice on the best ways you can fill your form and even direct you to all the various sites you can find and get the most relevant informations as regards to how you will easily fill your tax.
3. Pay Your Tax to HMRCBase on what you have declared in your self assessment tax return, HMRC will then calculate the tax your supposed to pay depending on the tax band that you are in.Majorly paying tax usually affects budget but it is always very good to pay your tax and stay away from any form of penalty that you will be due for if you default paying your tax. One of the best thing to do is to try and set up a specific amount of money down that you will be using to pay your tax because this will make the payment to be less of a burden to you when the time comes.
The deadline for payment of tax is usually the same as the deadline date for submitting your tax return, therefore if you are paying try and complete your payment before the last day, even if the deadline fall on a weekend, try and complete your payment on the last working day before the weekend except of course you will be making use of your credit card to make payment.If your payment is completed, confirm from your HRMC online account that will show you if the money have gone through and payment is successful which always shows upto 3 to 6 working days before you will be able to see paid on the payment status.
Making sure you make proper submission of your tax return before the actual deadline is very important and this as we have said can be online or on paper.Basically it is always easy to fill and submit online and the deadline for online submission is January and for paper is October following the end of the tax year.A very huge penalty will be paid if you miss out on the deadline therefore it is very essential that you seriously put the deadline in mind and if possible out in your diary and also set as a constant reminder and with this you won’t suffer anyform of penalty as a result of forgetfulness.Although there are instances that will make it impossible for you to meet up with the deadline maybe for a very reasons, in cases like that, it is always easy for you to be able to appeal thr penalty and if the reasons are very solid, you will not have to pay the penalty and this excuses are majorly maybe suddent death of partner or severe medical conditions among others.
To be able to pay your tax easily, you need to be able to complete your self assessment tax return very perfect and always work towards the payment of the tax early enough so that you can be able to have a stress free tax payment. Then as much as you can, make necessary submission and payment of tax early enough before the deadline to avoid any form of penalty.
1. How To Complete A Self Assessment Tax Return https://www.savethestudent.org/money/student-banking/hmrc-self-assessment-tax-return.html
2. How to Fill In A Self Assessment Tax Return https://www.moneyadviceservice.org.uk/en/articles/how-to-fill-in-a-self-assessment-tax-return
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