When it comes to self-assessment tax return, it is important to understand that there are many different types of tax returns that you will need to fill out. For example, if you are a limited company shareholder, you will need to provide proof of dividends. Similarly, if you own property, you will need to fill out Form SA(105) for rental income.
Before you can begin completing your tax return, you need to register with HMRC. This is a legal requirement and can be done online or by post. Once you are registered, you will be sent a unique taxpayer reference number (UTR) and can create an account with HMRC. You will also be required to fill out a form called the SA100.
Depending on your situation, you may be able to claim a range of expenses. It is always best to plan ahead for any upcoming refunds, especially if you will have to submit a tax return.
If you are a self-employed person, you should consider registering for Self Assessment. Unlike the PAYE system, which automatically deducts taxes from employee salaries, you are responsible for paying your own tax.
National Insurance and Student Loan
The UK tax system can be confusing to navigate. However, the HMRC website has a range of useful information to help you along. Aside from the self-assessment tax return, there are also helpful supplementary pages and help sheets.
If you are unsure of any of the information on the HMRC website, you can ask a member of staff. Alternatively, you can seek advice from an accountant. An accountant can help you calculate your income and National Insurance. They will also advise you on big decisions such as selling a second home.