Self Assessment Tax Returns
Self Assessment Tax Returns are completed by individuals, usually those who have tax to pay on income in addition to income already taxed at source. This income is declared to HMRC by completing a Self Assessment Tax Return.
There are numerous reasons for having to complete a tax return; the main ones are as follows:
- You are a company director
- You have income from a self employed trade
- You have un-taxed income
- Your income is in excess of £100,000
- You have capital gains tax to pay
- HMRC have sent you a tax return (for whatever reason).
This is not a definitive list of reasons why you may have to complete a return and a full list can be found on the HMRC website here.
When completing the tax return you will have to include all income received in that tax year and all taxes paid on said income, the general sources of income are:
- Employment income (salary, benefits in kind etc.) as per the P60/P45 and P11d
- Dividends as per the dividend vouchers
- Bank interest as per a statement from your bank
- Pension income as per your P60 from the pension provider
- State benefits (Job seekers allowance etc.)
- Rental property income.
The above list is not definitive and any other sources of income would still normally need to be declared.
Nixon Williams can prepare your tax return for you. The basic tax return, including employment pages, dividends and bank interest is included as part of the annual service, provided we receive the tax return questionnaire (this can be submitted electronically from our website – see below) along with all supporting documentation by 30th September (after the tax year), after this date there is a charge of £75+VAT. We may also charge a fee if you join Nixon Williams part way through the tax year, our welcome letter details the first tax return covered by our service.
Additional charges may apply if you have capital gains, property income or your SATR is relatively complex.
To complete our Self Assessment Tax Return Questionnaire please click here. If you require assistance completing the questionnaire please contact your account controller directly.
Once the form is completed Nixon Williams will provide you with the draft tax return based on the information you provide, once this has been approved we will file the return with HMRC electronically and will provide you with a copy for your records.
Due Dates and Deadlines
The tax year runs from 6th April to 5th April each year and this will be the period covered by the tax return, for example, the 2011/12 tax year runs from 6th April 2011 to 5th April 2012.
The SATR is due by the later of 31st October and three months after the date the SATR was issued if submitting a paper return OR the later of 31st January and three months after the dare the SATR was issued if you file it online.
Late returns will incur automatic penalties, varying in size depending on how late the return is. The penalties are as follows:
|1 day late||£100 penalty|
|3 months late||£10 penalty per day, up to a maximum of 90 days|
|6 months late||£300 penalty or 5% of the tax due, whichever is greater|
|12 months late||£300 penalty or 5% of the tax due, whichever is greater|
In serious cases you may be asked to pay up to 100% of the tax due as a penalty instead.
The payment of any taxes due for the year need to reach HMRC by 31st January following the tax yearend i.e. any tax due for 2010/11 is due by 31st January 2012. You may also have to make payments on account in advance of the next years liability, for further details on this please refer to our Payments on Account Factsheet; late payments will attract interest on a daily basis.