Personal Tax

How much does it cost?

We can support you with the preparation of your self-assessment tax return for a fixed fee. Our prices for this service start from £150 and vary dependent upon the complexities of your personal circumstances. To enable us to provide you with a quote please ensure you are able to provide us information relating to the various sources of income you have.

What is a tax return?

A tax-return is a form which has to be filed with HM Revenue and Customs declaring income during the tax year. This is because if you are self-employed, or a partner in business partnership you will not be registered through the normal channel of (Pay as You Earn) PAYE from an employer which declares your income on your behalf.

Who needs to prepare a tax return?

You must file a tax return if in the last tax year (6 April to 5 April), you were:

Working for yourself, i.e you are self-employed as a sole trader and earned more than £1,000
A partner in a partnership business
A minister of religion – any faith or denomination
A trustee or the executor of an estate
HMRC have issued a notice to file a tax return

If your only income is from your PAYE wages or pension then you will not usually need to send a return, unless you have any other untaxed income, such as:

Income from renting out a property
Tips or Commission
Income from savings, investments and/or dividends
Earned foreign income

When do I need to file a tax return

First of all, it is important to understand what constitutes a tax year, as well as to note down some key yearly deadlines for Self Assessment and/or Small Business Tax Return.

A UK tax year runs from 6 April to the following 5 April, however when we talk about tax dates it is often described as either ‘during the tax year’ or ‘following the end of the tax year’. For example, if we talk about the 2019/20 tax year it would have started on 6 April 2019 and finishes on 5 April 2020, this means that 31 January during the tax year would be 31 January 2020, while for example the 31 January following the end of the tax year is 31 January 2021.

When you file a tax return, it will always be for the last tax year.

Here are some key filing dates to remember;

5 October (following the end of the tax year)
You must notify HMRC by 5 October, if you did not submit a tax return for the previous tax year, but you need to submit one for the tax year that ended on 5 April, this is so that HMRC can send you a tax return.

31 October (following the end of the tax year)
If you have not signed up for completing your tax return online you have to send HMRC a paper tax return by the 31 October. There are penalties if you send the form after this date, even if you have no tax to pay.

30 December (following the end of the tax year)
If you file your tax return online, you will need to submit it by this date if you want HMRC to collect your tax through your tax code. This may be possible where you owe less than £3,000.

31 January (following the end of the tax year)
All online tax returns must be filed and submitted on or before this date, this includes any balance of payment due for that return. There are penalties if you miss this deadline for your return, even if you owe no tax or have already paid all of the tax you owe.

31 January (during the tax year)
You may have to make a payment on account by this date for the current tax year. For example, you may have a payment on account to pay for the 2020/21 tax year on 31 January 2021. Not everyone has to make payments of account.

April (after the end of the tax year)
As the tax year ends on 5 April, shortly after anyone who is required to file a tax return will receive a notice from HMRC advising them to file a tax return for the tax year which just ended. It is important to note you may still need to file a tax return even if you have not received a notice.

31 July (following the end of the tax year)
For those who make payment on account, the second payment for the tax year ending the previous 5 April is due. For example, the second payment on account for the 2019/20 tax year is due by 31 July 2020.

31 January (following the end of the tax year) + 1 year
If you become aware that an entry on your paper or online tax return is incorrect you can amend that return up to 12 months after 31 January following the end of the tax year. For example, if you need to change your 2018/19 return you have until 31 January 2021 to make the amendments. This applies whether you filed using a paper return or completed it online.

When is my tax liability due?

Your tax liability for Self-Assessment, i.e your tax and national insurance contributions are due as stated above on the 31st of January following the end of the tax year.

If your liability for the year comes to more than £1,000 (unless more than 80% of your tax liability was met by tax deducted at source such as PAYE), then you will also have to additionally make payments on account for the following tax year. You normally pay this in three instalments, the first two are payments on account of tax due for the current tax year, and then you pay the balance of tax due by 31 January following the tax year end.

Normally the first two payments on account are half of the tax you owe for the previous year. Payments on account are payable on 31 January and the following 31 July. If you think your income may be lower in the following year, you can apply to reduce the payments on account at any time, however if you reduce them by too much, there will be interest calculated back to the original date for payment. However, if you have paid too much tax ‘on account’, you will get a repayment.

How to register for an HMRC Tax Return

First of all, if you have decided to take the plunge and become self-employed, then congratulations!

Some people worry about setting up as self-employed or registering for a Director Tax Return, but registering with HMRC is fairly straightforward, and below are the steps to follow to register with HMRC;

1. It is good to double check that your work counts as self-employment using the Employment Status for Tax

2. Then register for an online account with the online registration portal – gov.uk

3. You will then have to wait for your 10-digit Unique Taxpayer Reference (UTR) details to arrive by post

4. Using this reference, you can then complete your registration and set up your online account using the Government Gateway, which will ask for information about your business, like trading name and contact details. You will need to decide on a name for your business. Many people choose to trade under their own name, however if you choose a specific trading name, then make sure you double check that there aren’t any other businesses using the same name

5. Once your online account is set up, it will give you access to a range of online government services, including completing your self-assessment tax return and making tax payments

Where can I find my UTR (Unique Tax Reference)?

When you register with HMRC for Self-Assessment or set up as a limited company, you will be automatically sent through the post a Unique Taxpayer Reference (UTR)

This is a 10-digit number which is often referred to as a ‘tax reference’.

Your UTR can be found via your HMRC online account, as well as previous tax returns, or paper documents which HMRC has sent to you, including notices to file and payment reminders.

It is best to call the Self-Assessment helpline if you cannot find any documents or your UTR from HMRC.

What are the late filing penalties?

If you miss the deadline for filing your return or paying the balance of your tax, then you will get a penalty. The initial late filling penalty is £100 if your tax return is up to 3 months late. You will have to pay more if it’s later or if you pay your balance late, and you will be charged interest on any late payments.

How can an accountant help with my tax return?

Using an accountant to help you file your tax return means you can feel confident and rest assured that the right forms will be completed, in the right way, and on time. Also, a good accountant will make sure you minimise your tax bill by taking advantage of legal tax laws, which will help you to pay as little tax as possible.

Therefore, accounting services are hugely beneficial because if you complete a document incorrectly then HMRC is likely to send it back to you to complete again, which could lead to you missing deadlines, and a late submission could cost you extra money in terms of a fine. And the worst-case scenario is that your return could be sent to a tax inspector, who will then go through your return in microscopic detail!