You must submit a Self-Assessment Tax Return if any of the following apply to you:
- You are a Company Director
- You are a Sole Trader (Self-Employed)
- You or your partner receive or have income above £50,000 and receive Child Benefit
- You receive foreign income that is liable to UK Tax.
- You are a recipient of investment income over £10,000
- Your annual income exceeds £100,000
- You are in receipt of rental income
- You have to pay Capital Gains Tax
- Completing your Tax Returns
Tax can be a very complex subject, so unless your tax affairs are very straight forward it is almost always better to seek advice from a professional than attempt to complete your own tax return.
Some of the benefits of using neal ford to handle your tax affairs are:
- Peace of mind. By using professionals you know that your tax calculations will be correct and accurate.
- Investigations. You are less likely to be investigated by HMRC if you use an advisor, as HMRC have ways of knowing if figures submitted on a return are likely to be incorrect. This is a common trigger for a tax investigation.
- Save time. In most cases it will take you a lot longer to complete your own tax return than it would for an advisor. This time could be better spent running your business.
- Claiming everything you’re entitled to claim. It is a very rare occasion that we take on a new client and are not able to find areas to reduce the tax owed. This is usually in the form of under declared expenses. Most business owners are not aware of all the different types of expenditure that can be claimed and how best to claim them, which is where we come in.
HMRC Penalties for late Returns (even if there is no tax due)
If you submit your Tax Return later than 31st January £100
If 3 months late – £10 per day for up to 90 days
If 6 months late – additional £300, or, if higher, 5% of tax due
If 12 months late – a further £300, or, if higher, 5% of tax due
If your Income Tax Return is 7 months late, the penalties will be at least £1,300 (£100 + £900 + £300)