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Self Assessment Tax Returns

HMRC Self-Assessment Returns for Contractors, Freelancers, Self-Employed and Company Directors

Completing a self-assessment tax return can often be a time consuming and complex process for many individuals.

Thousands of taxpayers are penalised by HMRC each year and incur large unnecessary costs through missing deadlines, incorrectly completing their returns and not retaining appropriate records.

Because tax legislation is constantly changing, keeping up with current regulations and understanding returns is increasingly difficult. But in order to meet the tax return deadline, sole traders, contractors and freelancers need to be able to ensure that complex tax returns are submitted correctly; otherwise, you may incur serious penalties and fines.

Taxpayers have a legal obligation to notify HMRC of tax chargeable income and failure to do so results in an immediate fine. Failure to file your tax return on time not only means financial penalties, but also an increased risk of an HMRC investigation. By getting to know you and understanding your tax and financial affairs, we can take steps to mitigate the risk of unnecessary enquiries.

Our specialist self-assessment accountants will complete your HMRC tax return and advise you on minimising tax liability. We can also liaise with you on any queries, submit your tax return to HMRC and confirm the amount to be paid and when it’s due.

Related Services

At Muhit & Co, we offer a comprehensive and wide-ranging individual self-assessment service which will save you valuable time and reduce the burden that comes with completing your tax return by yourself.

  • Registering with HMRC correctly.
  • Communicating with your bank or building society to gather relevant information
  • Calculating your tax liability
  • Completing your tax return and filing it for you.
  • Ensuring that you are aware of your tax liability and when it needs to be paid by.
  • Ensuring that you are aware of any tax-saving ideas
  • Free consultation and no-obligation quote
  • Team of experienced tax advisers
  • Keeping up to date with filing deadlines.
Muhit and co Whitechapel accountant

When do I need to register for Self-Assessment?

If you didn’t send a tax return last year, you’ll need to register for self-assessment by 5 October.

Which records will I need to submit Self-Assessment Tax Returns?

To complete your self-assessment return, you’ll need certain financial records to hand.

If you’re registered as self-employed, this includes:

  • all your business expenses
  • records of any sales or income
  • PAYE records (if applicable)
  • VAT records (if registered)
  • records of your personal income.

If you’re employed or a company director for a limited company, you may also need:

  • P45, P60 and P11D forms
  • certificates from a Taxed Award Scheme
  • information about any redundancy or termination payments
  • information about income and benefits from your job.

Do I need to keep records for tax purposes?

Although you would not need to submit your records, you will need to keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. This is in case the HMRC requires further verifications or plan on auditing you.

What is the deadline to submit Self-Assessment Tax Return?

The deadline to complete your Self Assessment tax returns are

  • 31 January if you are submitting online
  • 31 October if using Paper returns

Do I need to submit a Self-Assessment?

You must submit your self-assessment tax return on time every year if:

  • You are self-employed, a freelancer or a contractor who has earned more than £1,000 in the tax year
  • You are operating as a partner of a partnership or LLP
  • You are a trustee or Minister of religion
  • You have an annual income of over £100,000
  • You receive income from savings, investments and dividends
  • You have savings over the HMRC allowance
  • You receive untaxed income not collected through a PAYE tax code
  • You receive rental income
  • You are a director of a UK company
  • You have taxable foreign income or if you have a UK income whilst living abroad
  • You or your partner receive child benefit and your income is over £50,000
  • Your claims for expenses are over £2,500
  • You have sold assets in the tax year, such as additional properties or shares
  • You want to claim certain tax reliefs

What penalties exist for incorrect or late tax returns?

If you file your return late, the following penalties apply:

  • £100 if you are one day late
  • £10 for each additional day (capped at 90 days) plus £100 initial fine if you are up to 3 months late
  • Either £300 or 5% of the tax due (whichever is higher), on top of the penalties listed above, if you are 6 months late
  • An additional £300 or 5% of the tax due, plus the penalties listed above if you are 12 months late

You can estimate your penalty for late Self Assessment tax return on this gov.uk page.

If you make a mistake on your tax return, HMRC will determine whether you have been careless with your return or if you were trying to mislead them over how much tax you owe.

  • No penalty if you have made an honest mistake
  • 0% to 30% penalty if HMRC thinks you have been careless
  • 20% to 70% penalty if HMRC thinks you have underestimated your tax on purpose
  • 30% to 100% penalty if HMRC thinks you have underestimated your tax on purpose and tried to cover the fact
Muhit & Co accountants are a leading accounting firm in London

Experts Accountants for Small & Medium Businesses in Whitechapel, Brick Lane London.

Muhit & Co Certified chartered accountants is a widely-established firm which has a network that spreads across London with an office located at Whitechapel in Central London . The firm has been established since 2004 with a team of qualified accountants and tax specialists who have various industrial experience. We work with a large number of local businesses, sole traders and Individuals helping them achieve their goals through our pro-active and informative service.
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