Step-by-Step Guide to Self Assessment Rainham Residents Need to Know

Self Assessment Rainham

Have you ever wondered about whether you’ll need to complete a self assessment as a Rainham resident? In many cases, self assessment can feel a little daunting, especially if you’ve never done it before. Fortunately, this doesn’t have to be the case. And, while

Who Needs to Complete a Self Assessment in Rainham?

Before we go any further, we first need to consider: who actually needs to complete a self assessment in Rainham? Indeed, for the majority of people in Rainham, you won’t need to complete a self assessment. However, a portion of the population will need to complete self assessment tax returns.

Simply put, self assessment in Rainham applies to individuals who fall into one (or more) of the following categories.

  1. Self employed workers.
  2. Company directors.
  3. Individuals who have untaxed rental, investment, or overseas income.

Your local accountant in Rainham should be able to advise you on whether you need to complete self assessment.

How to Prepare for a Self Assessment Tax Return: Documents, Costs, and More

Preparing for a self assessment tax return is relatively simple. However, it’s best that you do this well in advance. Indeed, for many people, getting ready for your self assessment right before is often stressful.

To start with, there are several key documents you’ll need for your self assessment. These include a P60 or a P45 as well as obtaining an UTR number. In addition, make sure you have all business bank statements, receipts, and income and expenses records.

Before submitting your return, it’s also worth checking what you can – and cannot – claim as expenses. For example, some common expenses you might claim include advertising costs, travel expenses, and office supplies, among others.

Submitting your self assessment is free, but keep in mind you will receive a large tax fee at the end. As such, preparing throughout the year for this is generally advisable to ensure you don’t get caught out. After all, this can come as quite a shock for those who are new to self assessment tax returns!

Important Deadlines for Self Assessment Rainham Residents

There are several important deadlines all self assessment users in Rainham should know. These include the following:

  • 5th October. You will need to inform the HMRC that you will be completing a tax return by the 5th October. This applies to your first year of paying self assessment online.
  • 31st October. If you are submitting a paper tax return, the deadline for submissions is the 31st October. If you miss this deadline, you can still submit digitally.
  • 31st January. Digital tax returns have a slightly later deadline at the end of January. Digital returns are completed through the HMRC’s online self assessment platform.
  • 31st July. Most people will make payments on accoun towards their next tax payment. In this case, you’ll need to make your advance payments by the 31st of July. It’s worth noting here that advance payments represent a large portion of your next year’s tax payments. As such, be sure to save up for this throughout the year.

Penalties for Missing Self Assessment Deadlines in Rainham

Unfortunately, if you miss self assessment deadlines in Rainham, you could end up liable for penalties. As such, it’s important that you are aware of this to ensure you’re safe from fines.

The basic penalty for a late tax return is £100. This penalty remains set for three months after your tax return is due. After this point, the penalty will increase.

It is also worth noting that you will have to pay interest on late tax payments. This can be rather unwelcome; thus, ensuring you’ve submitted your returns on time is crucial.

With that being said, there are a few cases where you may be able to appeal penalties. These include:

  • Service issues with the HMRC platform.
  • Technical difficulties (computer / software failure while preparing the return).
  • An unexpected hospital stay or serious / life-threatening illness.
  • Delays due to mental health or disability complications.
  • Unexpected postal service delays.
  • Relying on someone else to submit the return.
  • Fire, flood, or theft.
  • Loss of a close relative or partner.

Your accountant should be able to help you if you think you are eligible for a penalty exemption.

Final Thoughts

Getting ready for your self assessment tax return needn’t be a headache. Luckily, our experts here at LiderTax can help. Contact us today to learn more about submitting your self assessment in Rainham. We’re here to simplify your accounting experience and help you submit your return easily.