We are all looking forward to Christmas, but it will not be long before the Self-Assessment Tax Return deadline of 31st January 2020 is upon us.
This payment period will cover self-employed income earned between April 2018 and April 2019.
Self-employed people who run a business are required to file a self-assessment tax return and pay tax on their income – this includes both sole traders and individuals who are involved in a business partnership.
As a limited company director and/or shareholder of a limited company, you may also need to pay tax on your salary and/or any dividend income.
You may also be liable to complete a return as an individual and some examples of untaxed income which may need to be declared are listed below:
- renting out a property
- tips and commission
- savings, investments and dividends
- foreign income
- sold assets and/or investments
The responsibility of self-assessment is yours to “self-assess” to HMRC. They have a strict penalty regime for failure to comply with their tax legislation.
The team have created a helpful Self Assessment checklist to download to show you all the things you need to consider.
If you are unsure if you need to complete a self-assessment tax return, please contact us.