IMS is here to assist you with the completion of your self-assessment Tax Return. To give you a basic understanding of the whole process, here is a quick guide:
- The tax year in the UK starts on 6 April and ends on the 5 April each year.
- If you need to complete a Self Assessment Tax Return for the first time you need to register with HM Revenue & Customs (HMRC). You will need to complete a form SA1 to obtain a Unique Taxpayer Reference (UTR) which can be downloaded from the HMRC website.
- HMRC will send your UTR which is a 10 numeral reference number that is unique to self-assessment taxpayers.
- Once you have received your UTR please send this to our Tax Department or to your usual contact. Note HMRC will not issue the UTR to us. Also, if you lose your UTR, HMRC will not advise you of your UTR Number over the telephone, so keep it safe.
- At the end of the tax year we will send you a letter/email, together with a checklist requesting details of all your income and any expenses you have incurred personally. From the information you provide we will complete your Tax Return. Any expenditure that has gone through your company is not required for the purposes of completing your Tax Return.
- The Tax Return has to be submitted to HMRC on, or before, 31 January each year . This time limit is for the online submission which we use. The 31 October deadline is for paper returns.
- Once the Tax Return is completed we will send this to you to confirm that it is complete and correct. We will, at that time advise you of any liability to or repayment of tax that might be due.
- Following receipt of your confirmation that the Tax Return is complete and correct we will send the electronic copy to HMRC. HMRC will in turn send us confirmation that the Tax Return has been received.
- The Tax Return and any tax due must be sent to HMRC to reach them on, or before, 31 January each year. Automatic penalties and interest will be charged for late payment. A 5% surcharge will apply if the payment is not received by 28 February. If the payment is still not received by 31 August a further 5% surcharge will be made.
- If HMRC send you a Tax Return and you fail to send it back at some later stage they will issue a determination of tax due. Put simply this is an estimate of the tax they think you owe. Only the submission of the Tax Return can overturn the tax in charge.
- HMRC have 12 months from the date of receipt of the Tax Return to conduct an enquiry to check that the Return is complete and correct. Penalties of up to 100% of the tax “lost” are charged for the submission of incorrect Tax Returns plus interest.