File tax return online solutions can be done by yourself with online accounting software, or you can get a tax expert to do it for you.
Being self-employed or owning your own business has many advantages, it allows you to be your boss and work on your schedule.
It means you can work in your pajamas with your favourite songs on, and it means that you get to reap the benefits of your initiatives and smart business planning.
However it also means that you are going to have to spend a good deal more time exercising your bookkeeping for profit and expenses.
You will need to complete regular tax returns and organize your national insurance payments to HMRC.
Furthermore, it can cause difficulty in acquiring a mortgage or loan and can be challenging if you become too ill to work.
There are no convenient P60 or wage forms and so whatever you earn and may need to be accounted for yourself – and if you follow these guidelines, you should be able to steer clear of trouble.
If you’re preparing for your first company or going self-employed, you first need to learn which category you fall under.
If you don’t have staff, then you are probably a ‘sole trader,’ which describes most kinds of freelance work.
However, if all your work is for a single client and company, then it can still turn out that you are technically an employee. So be sure to check that first before you do sign up to file tax return online.
Guidelines on the HM Revenue and Customs website can help you determine exactly which category you and your business fall into.
As soon as you’ve decided on this, you then need to register with HM Revenue that can be done online on the same site.
If you are self employed, or an employed indivudual, who needs to file your taxes then you will need to complete a self assessment tax form (SA100).
This is a fairly quick process and must be completed as soon as you start working for yourself to avoid being billed for previous earnings (likewise, however, you should not register until you’ve begun work).
Those quitting a prior job need to ensure they receive a P45 and payslips for their records.
From here you’ll receive confirmation that your registration has been successful and you won’t need to do anything else regarding tax until you’re issued a tax return notice.
This can occur randomly, but generally, it’ll be at the close of the tax year (the tax year starts and ends in April).
As soon as you receive this form, you will need to login to your online account and begin to fill in your self assessment on the screen by following the step by step instructions.
Fiill it in as accurately as possible including all incomings and outgoings to ensure you aren’t over or undertaxed.
If you don’t pay enough, you will probably need to pay it back at a later date and may also risk incurring a fine.
If you do not complete a tax return at all, even if you don’t owe any tax, then watch out because you will be hit with a penalty for that.
And chances are the penalty will come back to you in a few years time when you least expect it. And we know from experience that our clients do their best to avoid that at all costs.
Better to invest a little now in the best tax return service, rather than pay a huge fine later.
As soon as you’ve completed the file tax return online steps your form is sent electronically to HM Revenue and you will receive a confirmation and acknowledgement receipt.
Make sure to do the filing online well ahead of the 31st of January deadline.
Are you interested to learn more?
➡ Get FREE tax consultation for vital tax saving tips: