Self Assessment Tax Return Guide
A Self Assessment Tax Return is designed for individuals who are paid outside of the PAYE Scheme, meaning they are not a permanent employee, i.e. if you are a contractor operating through a limited company you must complete a self assessment tax return. HMRC will ask you to complete this in order to determine the right tax payment and allowances for the financial year.
Nixon Williams offer a simple self assessment tax return service, starting at just £100 + VAT (depending upon the circumstances). If you would like to discuss this service in more detail, you can call us on 01253 362000 or email firstname.lastname@example.org
We have put together a simple guide below on the most common questions we receive when completing a self assessment tax return.
This page contains all your personal details i.e. name, address, NI number, UTR number etc. so you need to ensure that all the details shown on this page are correct. It also gives you some basic information relating to the various deadlines surrounding the self assessment return.
This details any supplementary pages that are included within the return along with the student loan part of the return. Common additional pages that are needed are for the following:
- Employment pages – This is needed if you have had employment income or held a directorship within the tax year
- UK Property pages – This is needed if you have rental income including normal rental income, furnished holiday lets or rents received under the ‘rent a room’ scheme
- Capital Gains summary – This is needed if you have made any taxable gains within the tax year or if you have made any capital losses that need carrying forward.
This is the first page of the tax return where actual figures will be entered to detail your income throughout the tax year. The main boxes for completion here would normally be:
- Box 1 – Taxed UK Interest, detailed here will be the net amount of interest received from UK bank accounts,
- Box 3 – Dividends from UK companies, detailed here will be the net amount of dividends received from UK companies during the tax year,
- Box 10 – Pensions, detailed here will be the gross value of any pensions received during the tax year,
- Box 11 – Pension tax, detailed here will be the amount of any tax deducted from the pension payments in box 10.
- Box 14 – Jobseeker’s Allowance, if you have received Jobseeker’s allowance during the tax year it should be shown here.
The main boxes for completion here would normally be:
- Box 1 – Payments to registered pension scheme where basic rate tax relief will be claimed by your pension provider. This is pretty self explanatory but detailed here will be the total value of the personal pension contribution along with the tax relief that is claimed by the provider. Thus, the gross pension payment is shown here,
- Box 5 – Gift Aid, detailed here will be the gross value of donations made under the gift aid scheme during the tax year,
- Box 6 – ‘One off’ payments, any payments included in box 5 that are ‘one off’ i.e. not recurring will be shown here.
Service Companies - Box 1 (bottom of page TR4)
Detailed here will be the total gross income i.e. gross salary and gross dividends received from your service company. Please see our separate Self Assessment Service Company page for more details on this box.
Generally there will be no entries on this page, however, if there were entries on this page they would probably be in the following boxes:
- Box 2 – This will be checked if you want to collect the tax due via your tax code (only possible if the tax due is below £2,000),
- Box 3 – This will be ticked if you do not want an estimation of your 2013/14 tax due to be collected via your 2013/14 tax code. You should take care with these boxes; if you are on a low salary then it may not be possible to collect the tax via your tax code (and salary) anyway,
- Boxes 4 – 14 – These will be completed if you want to receive any repayments (where applicable) direct to your personal bank account.
This is the last page of the tax return (excluding supplementary pages) and will contain details of your tax advisor (if you have one) along with any other information that may be necessary to declare to HMRC (this would be shown in box 19).
If Nixon Williams are completing your return we will need page TR6 signing and returning (scanned copy via email will suffice) before we can go ahead and submit your return electronically to HMRC.
This is the first employment page and should be completed as follows:
- Box 1 – Total gross pay from the employment
- Box 2 – Total tax deducted in the employment
- Box 3 – Tips of other payments not on the P45 or P60
- Box 4 – The employers PAYE reference
- Box 5 – The employers name
- Box 6 – Checked if you were a director of the company
- Box 7 – Checked if the company was a ‘close’ company i.e. controlled by 5 or fewer shareholders or controlled only by directors who are also shareholders
- Box 8 – Generally left blank
- Box 9-16 – Completed based on the figures on your P11d. This treats them as taxable income
- Box 17 – 20 – Detail here any expenses that were incurred ‘wholly and exclusively’ for business use. This treats them as tax deductible.
If the entries in boxes 9-16 equal the same as those in boxes 17-20 there will be no additional tax to pay on the expenses.
This is the first page on the tax calculation summary and the boxes will contain the following details (where applicable):
- Box 1 – The total tax due (including student loan repayments and class 4 NIC’s) based on this return not taking into account any payments on account
- Box 2 – The total tax due for refund based on this return
- Box 3 – The total Student Loan repayments for the year
- Box 4 – The total Class 4 NIC’s due for the year
- Box 5 – The total capital gains tax due for the year
- Box 6 – The total pension charges due for the year
- Box 7 – If you have underpaid tax in a previous year and this is reflected in your tax code for 2014/15 it should be shown here
- Box 8 – If you have any underpaid tax for 2014/15 shown on your 2015/16 tax code it should be shown here
- Box 9 – If you want to reduce your payments on account this box needs to be checked
- Box 10 – This is the amount of your first payment on account towards 2015/16. For further details on payments on account please refer to our separate page
- Boxes 11-15 – These are generally not used
- Box 16 – The ‘white space’ of the tax return, any other details/comments not on the return can be noted here.
If you are ever in doubt of any of the figures on your tax return please do not hesitate to contact us on 01253 362000 or email email@example.com