Frequently Asked Questions
What is a Self Assessment Tax Return?
Self Assessment is a means of declaring your income, costs and profits to HMRC, for anybody that earns income outside of the PAYE system.
Once your full income for the year has been calculated with costs and any tax deducted, the tax and National Insurance due on your taxable profits can be calculated.
Once your full income for the year has been calculated with costs and any tax deducted, the tax and National Insurance due on your taxable profits can be calculated.
When does a Self Assessment need to be submitted?
The tax year runs from 6th April to 5th April each year.
The Self Assessment and any tax and National Insurance due to HMRC must be submitted by the 31st of January of the following year. This is the last deadline for filing electronically.
The Self Assessment and any tax and National Insurance due to HMRC must be submitted by the 31st of January of the following year. This is the last deadline for filing electronically.
What happens if you are late submitting your returns and/or payments to HMRC?
HMRC can charge you a penalty for late submission and/or payment. The penalties increase the longer the returns or payments remain outstanding.
What is Corporation Tax and what types of businesses need to pay it?
Corporation Tax is a tax on the taxable profits of limited companies and other organisations including clubs, societies, associations and other certain unincorporated businesses.
What is the VAT registration threshold?
Businesses with a turnover of more than £85,000 per annum must register if they provide a service or sell goods that are subject to VAT. This threshold is assessed at the end of each month for the year to date.
How does VAT work?
VAT registered companies must charge VAT to their customers (currently 20% of the invoice total). Every three months, you calculate how much VAT you have received or invoiced and how much VAT you have paid as part of your expenses. Any difference between the two is paid to Her Majesty’s Revenue and Customs (HMRC)