5 Most Frequently-Asked Questions for Self Assessment Tax Returns
Self-assessment is a system put in place by HM Revenue and Customs to help collect income tax from individuals and businesses.
In addition to the automatically deducted tax on wages, pension, and savings, the UK residents are required by HMRC to report any other income through a tax return. This covers income generated from self-employment, tips, and gifts. However, many of the additional sources have a minimum threshold below which you don’t have to report.
Many individuals and business have a tendency to wait until it’s running late to deal with their self-assessment tax returns.
In fact, it has become a habit to some people. Why should you wait until last minute yet there are huge benefits of compiling your returns early? Quiet HMRC offices become terribly busy whenever the deadline for a tax return is due. Normally easy to contact help desk become almost impossible to reach when January 31st is around the corner.
FAQ For Self Assessment
With HMRC experts practically unreachable online towards the deadline date for self-assessment, many people turn to online social media platforms to find answers. Interestingly, a good number begin their queries by quoting HMRC’s on hold music they had to listen to for several minutes with no response. Below is a rounded up list of the 5 most frequently asked questions for self-assessment:
- Am I eligible to file a self-assessment tax return?
If you have additional income other than wages or pension, you are eligible to send tax return. Go ahead to file your tax return if the last tax period:
- You were in self-employment
- Your untaxed income was more or equal to £2,500
- You got £10,000 or more in income from savings or dividends
- You got profit from selling a chargeable asset, and
- You a director of a profitable organization
- How do I know the amount I owe HMRC?
If you have used the correct tax code and entered all the information accurately, the self-assessment system will automatically calculate and display the amount you owe, including tax and National Insurance. It is important to cross check the information before confirming. Finally, click on the press button to get a hard copy of your calculation for reference.
- How can I register for self-assessment?
Registration for self-assessment is done online. You will be asked to prove your identity before you can get a 10-digit unique code from HMRC. You will then sign up for HMRC’s online services to activate your account. You should be advised to register early so that you get enough time to complete your tax returns before the due date. Consider expert services from online accounting firms like WeAccountax if you find the process challenging.
- Forgot my user password, what can I do?
Forgetting or losing your password is a normal thing. In fact, hundreds of people ask for new passwords every tax year. You have two options to recover your password; online or by post. Whichever route you decide to take, you need to have your user ID and details of services. You can always call HMRC for assistance.
- When should I complete my 2017/2018 self-assessment tax return?
To avoid possible penalties, choose to do this before 31st January 2019
How We Can Help
Are you not familiar with the whole of self-assessment tax return or part of it? Contact WeAccountax for expert guidance. We are a one-stop-shop for the best online accounting services for businesses across various industries. If you have been penalized, we can still help you to appeal self-assessment penalty reason. Link with us for quality and affordable bookkeeping, payroll, and consultancy services.