Introduction to Self-Assessment Tax Return
Self-assessment tax return is a system started by HMRC to collect income tax from tax payers. Under this system, tax payers must complete their tax return each year and should file their income, capital gains, claim allowances & reliefs before the April deadline.
You must complete & submit SA100 form to file your self-assessment tax returns to HMRC
. While filing your tax return, you must not exclude any source of income, whether it is small or tax already deducted at source. The tax year runs from 6th April to 5th April of the next year. For example – 2018-19 tax year runs from 6th April 2018 to 5th April 2019.
The deadline for paper return is 31st October, while 31st January is the deadline for online returns.
Most of the employees working in the UK pay their tax returns through the PAYE system and are not required to file a self-assessment tax return
. If you receive income from abroad or you are having complicated tax affairs, you must complete a tax return.
Who needs to Complete Self Assessment Online?
The tax payers who needs to file self-assessment online are given below:
- Self-employed persons whose income is more than £1,000,000
- Persons with taxable gains to declare such as property landlords
- If you or your partner’s income is more than £50,000 and you are claiming child benefit
- If you receive income from abroad or you live abroad and receive an income in the UK
- You are a director of a company
- You are a trustee of a trust or registered pension scheme
- If you are earning rental income
Deadline of Self-Assessment Tax Return
The tax year runs from 6th April of the current year, to 5Th April of the next year. There is a deadline to submit self-assessment tax return to HMRC
, which every tax payer needs to follow. If we take the example of 2017-18 tax year, you must follow these deadlines between 6th April 2017 to 5th April 2018 to submit your tax before the deadlines reaches –
- If you are submitting your return for the first time, you must register for self-assessment by 5th October
- For a paper return, the last date for submitting your self-assessment tax return is 31st October
- For an online return, the last date for submitting your self-assessment tax return is 31st January
If you miss any deadline, it will lead to fines & penalties. There is a penalty of £100 on the tax payers who do not submit the tax before deadline and a further penalty of £10 per day will also be charged after completion of 3 months.
If you fail to submit your tax return
, it is likely that HMRC will ask for evidence of your excuse. Be warned, the excuse should be valid as HMRC have rejected many previous excuses, and are not forgiving of your dog eating your tax return or that your internet connection failed etc.
How to File a Self Assessment Tax Return to HMRC?
There are many options provided by HMRC to make it easy to file your self-assessment tax return. You must choose the best submission method to file your tax return from the following:
1. Paper returns
– The paper submission deadline for filing self-assessment tax returns is 31st October but it’s been suggested to file your tax return online rather than using a paper method. Filing returns with the paper method is time-consuming and a complicated process. This method will be eliminated soon.
2. Online returns through HMRC website
– Another method of filing self-assessment tax return is to submit it through HMRC website. You must register yourself for a government gateway login otherwise you cannot submit your tax return via the HMRC website. This method is one of the most popular methods of filing self-assessment tax returns across the country. This method will be eliminated soon due to Making Tax Digital
3. With the help of an accountant
– Accountants are used by many businesses to file self-assessment tax return as they have expert knowledge, tools and specialization in handling accounts. They offer you support and guidance while completing all the calculations on your behalf, ensuring that taxes will reach HMRC before the deadline.
4. Tax software
– Tax software is the most advanced method to file the self-assessment tax return online. With the help of tax return software, you can easily complete the required details and then it performs all necessary calculations on your behalf and sends them directly to HMRC. You don’t have to worry about the submission deadline as the software providers ensure your tax return will be submitted to HMRC before deadline reaches.
How will Nomisma help to complete my Self Assessment Tax Return?
Nomisma offers you the best self-assessment software, which is very useful for small businesses, accountants, contractors, freelancers, agents, non-profit and charitable organizations and directly submits self-assessment returns to HMRC. It helps in:
- Submitting unlimited self-assessment returns directly from the software to HMRC.
- Confirming HMRC has accepted or rejected your return via submission report
- Simplifying client engagements by creating templates and scheduling e-mails
- Uploading & maintaining all critical documents of the clients by attaching it to their accounts for easy access
- Accessing different system generated reports
Nomisma provides an overview of all the aspects of self-assessment, from showing work status, client management, workflow management to submitting tax information directly to HMRC and generating detailed reports at the end. In using our Self Assessment Software
, you will increase the accuracy of self-assessment returns and reduce the time taken to complete them. Nomisma is an integrated solution that links self-assessment with payroll, bookkeeping and final accounts so you don’t waste valuable time inputting the same data.
How to Submit Self-Assessment Tax Return to HMRC through Nomisma
Want to know, how to submit self-assessment tax return to HMRC through Nomisma Solution. You can go though below video.
We offer all interested agents a free 14 days free trial to get used to the software and experience how Nomisma can help improve the accuracy and efficiency of your practice. Try Nomisma