A forward-thinking accountant will do everything possible to help you claim back as many expenses as possible.
In simple terms, self assessment is a process where an individual declares his income and expenses.
Self assessment accountants help a personal taxpayer determine his or her own tax responsibility and calculates any income tax and national insurance. A forward-thinking accountant will do everything possible to help you claim back as many expenses as possible.
Before you can submit your self assessment. You will need to sign-up with HM Revenue and Customs (HMRC). This is so they can give you a specific reference number that you need to submit your tax return online, known as the “Unique Taxpayer Reference”.
How to Calculate Self Assessment
If you are using your residence as your place of work, and using your electricity and phone line, for the professional use too, then you can only claim a certain percentage of your bill against your income. For example, if you are using the electricity and telephone line 80% for your personal use and only 20% for your business, then you can claim 20% of the bill as an expense.
Advantages of Self- Assessment
You always need to file your tax on time. The benefit of paying tax on time means that you need not be anxious about additional fees and charges.
If you have taken any student loan, then also, you need to mention at the time of your taxing bill. It is really very important that you should remember this loan since you will end up paying additional in the future.
You can really save your hard earn money if you know where to claim back the tax savings. People who do not keep the right records throughout the year will end up paying the extra amount for the taxes and wasting extra hours on paperwork.
Self assessment doesn’t apply to everyone. But, as an example, if you are self-employed or a company director you will need to file a self assessment.