Filling a self assessment tax return could be very daunting but when you are prepared, organized and understand the relevant information they will request from you, it will be easy to do. The bitter truth is that regardless of your quest to read and master all the stated guidelines with regards how you will fill your tax assessment tax form, it is important for you to be meticulous about it.
You will be able to realize that it is what you can do in a couple of minutes and pretty smooth. This article will help you provide the important guide on how you can fill one.
Tax assessment return is meant for students that makes money through self employment. It is observed that about 8% of the students have at least a unique business they do. Self employment will enable you to decide how to make big money, have total control of your finances. The more you work hard, the more money you make for yourself.
Although, you can control your finances but you don’t have control over your tax and that is the reason why you need to submit your self assessment tax return every January each year. It might look a bit complicated but if you read through this article, you will realize it is something that can be done in some minutes.
Why Do I need to fill a Self Assessment Tax Return?
Here are some of the reasons that will warrant you to fill your self assessment tax return:
- When you have earned more than 2,500 pounds in an untaxed income.
- When your self-employment income is above £1,000.
- If the savings you earned from investment is more than £10,000.
- When you are a director of company (unless it is a non-profit organization).
- If you are a trustee of a trust or registered pension scheme.
- When your taxable income is above £100,000.
- If your state pension is more than your personal allowance and is your only source of income.
You can voluntarily fill a self assessment tax return because it will qualify you to receive state pension.
How to register for a Self Assessment Tax Return?
In case you have not submitted a return before, it is important to firstly register for Self Assessment. There are several ways you can register if you are self-employed, not self-employed but need to declare income, or you are into partnership.
When you are done registering, they will send your Unique Taxpayer Reference (UTR). If you wish to submit your Self Assessment form online, you will have to set up a Government Gateway account. In order to this, you will have to follow the instructions that are contained in your letter with UTR.
When you are done setting up the account, you will be sent an activation code in the post, it will be needed to complete the set-up of your Gateway account. In case you have submitted Self Assessment tax returns before, you will need your old UTR to register and set up the account.
It is important to ensure that you can access Gateway account before you try and submit your Self Assessment in order to save time if for any reason you can’t log in.
What are the Self Assessment deadlines?
You are to submit tax returns for tax years and not calendar years. So, you will do this in arrears. In general case, the deadline for filing your tax return online is 31st January each year.