When starting your own business there are going to be a lot of things that become a routine year in year out. Today we are focusing on a big point in the calendar year for every business owner including yourself and that is paying your first self-assessment. Simply put your self-assessment is your tax return form. It’s the way in which you report your annual earnings to HMRC so they know that you are being taxed correctly.
The word self-assessment is used as it is your responsibility as the business to work out yourself how much tax to pay and that is what changes from previously where your tax was automatically calculated. That is why you have to ensure that you’ve planned well in advance and ideally have been keeping a track of your finances throughout the year. If you are unsure over whether you have to pay your self-assessment the UK government have a full list here of those who have to pay it.
Now, let’s move on to these important dates in the calendar. A majority of business owners file their self-assessment online. And you need to do this by the 31st January of each year after the end of each tax year. It’s advisable that throughout the year you keep up to date and keep a record of everything so that you’re not rushing to do everything at the last minute and potentially underpaying or overpaying on tax due to oversights.
However, if you are unable to file your self-assessment online you can also do it through the post and this then moves your deadline to the 31st October after the end of the tax year. Just to recap each tax year runs from the 6th April to the 5th April. So this past year would be 6th April 2020 to 5th April 2021. If you are filing your self-assessment online you can do so by going to the online HMRC self-assessment login portal by clicking here.
Here at D&K Accounting, we can help you with your accounting whether it’s paying your first self-assessment or keeping a track of your books throughout the year and managing your money more efficiently. As Profit First professionals we can help and support your business to survive the early days and then grow and prosper.