If you’re a self-employed business owner in the UK, it’s important to stay on top of your tax obligations. One of the most important tasks you’ll need to complete each year is your self-assessment tax return. In this blog, we’ll cover the typical information you’ll need to complete your self-assessment tax return as a self-employed business owner in the UK.
Register for Self-Assessment
The first step in completing your self-assessment tax return is to register for self-assessment with HM Revenue and Customs (HMRC). You’ll need to do this if you earned more than £1,000 from self-employment during the tax year. You can register online on the HMRC website.
Gather Your Records
Once you’ve registered for self-assessment, you’ll need to gather all the records you’ll need to complete your tax return. This includes:
- Records of all the income you received during the tax year, including sales invoices and receipts.
- Records of all your business expenses, including receipts and invoices for things like rent, equipment, and office supplies.
- Details of any other income you received, such as rental income or interest from savings accounts.
Complete Your Tax Return
The self-assessment tax return is a form that you’ll need to fill out with all the information about your income and expenses for the tax year. You can complete this form online on the HMRC website or by downloading and filling out a paper form.
Calculate Your Tax Liability
Once you’ve completed your tax return, you’ll need to calculate your tax liability. This is the amount of tax you owe based on your income and expenses. The amount you owe will depend on your tax band, which is determined by how much you earn. You can use the HMRC online tax calculator to help you work out how much tax you owe.
Pay Your Tax
Finally, you’ll need to pay your tax liability by the deadline. The deadline for online tax returns is 31 January following the end of the tax year, while the deadline for paper tax returns is 31 October. You can pay your tax online using a debit or credit card or by setting up a direct debit.
In conclusion, completing your self-assessment tax return as a self-employed business owner in the UK requires you to register for self-assessment, gather your records, complete your tax return, calculate your tax liability, and pay your tax by the deadline. Staying on top of your tax obligations is important to avoid penalties and ensure you’re meeting your legal requirements as a self-employed business owner. If you need further assistance, contact Dan at d&k accounting on Daniel@dkaccouting.uk or call on 01302613515.