Taxpayers are liable to pay the correct amount of tax on set dates via Self-Assessment tax return service. CWI Accountants assists in making this process streamlined and easy to execute with an in-depth guidance to better understand tax related issues.
Self-assessment applies to:
- Self-employed individuals/Business partners
- Company directors
- Individuals who pay higher rate tax
- Pensioners with complicated tax affairs
- Individuals receiving rent or other income through owned property/land in the UK
- Trustees and personal representatives
- Non-resident company landlords
- Trustees of approved self-administered pension schemes
Tax year runs from 6th April to 5th April every year. In case you want to submit a paper return, due date is 31 October following the end of the tax year. For electronically submitted returns, you have until 31 January following the end of the tax year to file returns. Hence the effective due date for our clients is 31 January.
Payments on account:
Two advance payments towards your tax bill need to be made based on previous year’s tax on 31 January and 31 July each year. A balancing payment may be required should the total tax bill be in excess of payments on account.
Tax Return Penalty:
In case tax is not paid in time, you are liable to penalty, with an interest that will run from the date the tax is due. Additionally there is a 5% surcharge on any part of the tax that is not paid by 28 February after the end of that tax year and a further 5 % surcharge on amounts still unpaid five months later, at the end of July.
An automatic penalty of 100 pound is levied by tax authorities if the tax return is filed after due date and a further 100 if the return is more than 6 months late, with the provision that the penalty cannot be more than the tax due.
Responsibilities under self-assessment rules:
It is mandatory under self-assessment rules to keep documentary evidence supporting all figures comprising you tax return. Tax returns relating to property income and self-employed income must be kept until at least 5 years of filing date of tax return. Returns relating to employment and investment income must be kept for at least one year from filing date. As a general rule it is advisable to maintain tax and business paperwork for at least 6 years from the end of the tax year in which they were filed. Failure to maintain record can result in a penalty for each tax year from the tax authorities.
HMRC can approach individuals if any discrepancy is noticed. Also they randomly select accounts for checking even if everything is apparently in order.
How can CWI Accountants help you?
We provide the following services:
- Make sure all tax allowances and deductions are claimed
- Assistance with complex paperwork
- Professional guidance to help you minimize or even mitigate tax liability
- Preparation and submission of returns
In case of inquiries from HMRC, we help are clients with advice and professional support. We can also help you with tax inquiry fee protection for expenditures arising from revenue investigations. For more information please get in touch.