Business Self employed

Self Assessment Tax Return for the Self-Employed

Self Assessment Tax Return

Have you ever wondered about submitting a self assessment tax return for the first time? If this is your first experience submitting a tax return and you need some help and guidance, don’t worry. Our teams here at LiderTax have outlined some of the most critical things you need to know. Hopefully, this will help make the process easier when submitting your self assessment tax return as a self-employed worker.

What You Need to Know About Self Assessment Tax Returns for the Self-Employed

Submitting self assessment tax returns is daunting if you’ve never done it before. However, this shouldn’t have to be the case. And, once you know how the self assessment tax return process works, things tend to become a lot easier.

Who Needs to Complete a SA Tax Return?

First, we need to address who actually needs to complete a self assessment tax return. Self assessment tax returns are typically required for self-employed workers earning above £1000 trading allowance in a given tax year.

Do I Need to Complete a Self Assessment Tax Return if I Made a Loss or Broke Even?

Once you have registered for self assessment tax returns, you’ll need to submit these annually. This fact remains true each year, regardless of whether you make a profit or loss. As such, even if you’ve made a loss or only broken even, you will need to submit your return.

The exception is if this is your first year of trading and you’ve made less than £1,000e. In this case, you won’t need to submit a tax return; however, you will likely need to for any subsequent years of trading. Contact your accountant for further support in this regard.

When Do I Need to Submit a SA Tax Return?

You will need to submit a tax return every year once you’ve registered for self assessment. The deadlines for submitting a tax return are as follows:

  • If you are submitting a paper copy, you’ll need to do so before the 31st of October. Paper copy tax returns are printed out, filled in manually, and posted to HMRC directly.
  • If you are submitting a digital tax return, you’ll have a longer deadline than on paper. The deadline for digital tax returns is the 31st of January.

It’s always worth remembering that your tax return is applicable for the previous business year. So, if you are submitting a tax return in December 2023, you’ll be completing the return for trading between April 2022 and April 2023.

What if I Submit My Tax Return Late?

If you submit your tax return late, there’s a good chance that you’ll be landed with a fine. Fortunately, if you’re only slightly late, this won’t usually be hugely expensive; late filing fees start at £100, although they do increase over time. Similarly, late payments will be calculated based on the amount of tax that’s left unpaid.

How Early Can I Begin my Self Assessment Tax Return?

Many people will leave paying their self assessment tax return until closer to the due date; however, this doesn’t have to be the case. In fact, you can begin working on the return as soon as the tax year is up if you wish. This can provide substantially more peace of mind, so you know the clock isn’t counting down.

Get Started On Your SA Tax Return Today

Completing your tax return is no easy feat. Luckily, though, self assessment doesn’t have to be the nightmare it’s made out to be. In line with this, we’ve outlined some of the main things you need to know about your SA tax return today. But if you have any further questions or queries, our friendly teams here at Lidertax can help – CLICK.

So, why chance it; contact us, and we’ll see what we can do to help – CLICK.