Self Assessment, also known as an Individual Tax Return, is a declaration of annual income every self-employed individual must submit to HMRC.
Issues arise out of form complexity. The Self-Assessment form itself has been criticised for being too complex to understand. Sterling Finance can act as your agent and deal directly with HMRC on your behalf. This will guarantee return accuracy and make sure you’re paying the right amount of tax.
In addition to self-employed individuals, usually, the company director of a Limited Company also needs to submit a Self Assessment to declare income and dividends. This tax return is the basis for establishing the tax liability of individuals, partners and companies. Completion of a tax return is part of our standard compliance service and is combined with the appropriate annual accounts required to accompany the return.
One of the most common mistakes people make with self-assessment is posting a cheque out to HMRC. This is not classed as payment until the funds are received in HMRC’s bank account. This misunderstanding can incur late payment fines plus interest.
This is avoidable if the tax return is prepared to suit your needs. We prepare your self-assessment as soon as your accounts are finalised to give you sufficient time to meet the tax bill. This will help you avoid any penalty fees and associated interest.
If you are unsure about how to file your self assessment or how to minimise your tax liability legally, we can advise you on this. To speak to our Chartered Accountants about self-assessment, please call us on 0161 339 4989.