All self-employed persons, together with most people who have income other than straightforward PAYE, are required to submit self assessment tax returns.
The returns must show all income, alllowable expenses, and capital gains made during the year to 5th April and must be filed no later than 31st January following the tax year if filing online, or by 31st October if filing a paper return. We file all of our clients' returns online.
As with other aspects of tax, the government's policy over recent years has been to put the onus on the taxpayer to ensure the returns are correct, unlike the traditional approach where liabilities needed to be agreed with the Revenue. Whilst this has simplified the system, it brings with it new dangers as there are penalties if the taxpayer gets it wrong, and it could take many years for problems to be discovered resulting in large back taxes and penalties. We therefore believe it is important to use a competent accountant to look after your self-assessment needs.
One area where we believe the Revenue will attack taxpayers in the near future is rented property where many people have not submitted proper returns on income from second properties.
If you think we can help on any aspect of self-assessment, please contact us.