New Contractors: How to File Your First Self-Assessment
Posted 07 Feb 16
Today, a lot of people decide to start a part-time business alongside their everyday job. It might be their first step in becoming a full time limited company director, or just a way to earn extra money while safely remaining in their salary-based employment.
Running your own business, even if it’s a small side-project, comes with a number of advantages, which include tax benefits, limited liability status, as well as, a sense of financial freedom, a free choice of time and space you want to dedicate to work, and a full control over your business plan.
However, along with the advantages, there are also some responsibilities you will need to fulfil towards HMRC. One of them is filing for Self Assessment. In this article, we will explain to you the process of filing for your first self-assessment. You might find it especially useful if you’ve just started contracting or if you’re planning to start a part-time business in the near future.
Registration and Filing for Self-Assessment
Self Assessment is used by HMRC to learn how much income exactly you have been making from your part-time business and in consequence, how much tax you will need to pay on top of what you’ve been already paying each month through PAYE.
The first thing you will need to do in order to file for your self-assessment is register with HMRC. You can register either by phone, online or by post, however, the easiest, quickest and safest way is by hiring a professional and certified accountant to do it for you. The process of Self-Assessment can be especially daunting if you haven’t done it before and in January, it is almost impossible to get in touch with HMRC helpline without spending even hours, waiting in the queue. With the start of the year, there are a lot of other deadlines young business owners have to keep up with and dealing with Self Assessment process without help and guidance might influence the overall performance of your business in a negative way. If you would like to find out how we can take the burden of paperwork off you, contact our accountants at Tawanda Accountant today.
In order to complete the registration process, you will need:
Your National Insurance Number
Your personal and business details
You must register for your Self Assessment by 5th October in the tax year after the one you need to file a tax return for. If you are afraid you might have missed the deadline, contact your accountant immediately.
After a successful registration, you will be given a Unique Taxpayer Reference number, which you will need in order to file your Self-Assessment.
You can complete your Self Assessment online or file it by post, however, the easiest and safest way is to hire a professional and certified accountant to do it for you.
After you’ve double checked all the information regarding your income you’ve provided, HMRC will let you know how much tax you owe and how to make the payment. For more advice and to speak to one of our expert accountant, contact us today at 0800 345 7556