If you start working for yourself, you’re classed as a sole trader. This means you’re self-employed - even if you have not yet told HM Revenue and Customs (HMRC). We understand the intricacies of the UK tax system and we are here to guide you every step of the way.

 

Self-Assessment Tax Return: Your personal tax year runs from April 6 through April 5. Online tax returns must be submitted by 31st January, and paper returns by 31st October. Late submissions incur penalties, so it's crucial to adhere to deadlines.

However, if you're leaving the UK and seeking a tax rebate, you don't need to wait until the year-ends – we can assist you promptly.

 

You’re probably self-employed and you Need to Complete a Self-Assessment Tax Return If You:

 

• Run your business for yourself and take responsibility for its success or failure.

• Have several customers at the same time.

• Can decide how, where and when you do your work.

• Can hire other people at your own expense to help you or to do the work.

• for you.

• Provide the main items of equipment to do your work.

• Are responsible for finishing any unsatisfactory work in your own time.

• Charge an agreed fixed price for your work.

• Sell goods or services to make a profit.

• Become a UK Company Director.

• Receive income from land/property.

• Have taxable foreign income.

• Have capital gains tax to pay.

• Work as an employed and self-employed person simultaneously.

• Are no longer self-employed but haven't informed HMRC.

• Receive income from property letting, dividends, Child Benefits, etc.

 

How much can self-employed person earn before paying tax?

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How to calculate your income tax rate

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Income                                                   Tax rate

 

between £0 and £12,570                      0%

 

between £12,571 and £50,270            20%

 

between £50,271 to £150,000             40%

 

above £150,001                                     45%

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Our Self-Employment Services Include:

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Personal Tax Consultation: An annual consultation to address your unique tax situation.

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• Thorough Tax Calculation: We ensure every aspect of your taxes is meticulously calculated.

• Capital Gains Tax & Income Tax: Expertise in managing both capital gains and income taxes.

• Complete HMRC Compliance: Stay on the right side of HMRC regulations with our comprehensive compliance services.

• Online Service Integration Assistance: Seamlessly integrate your services online for added convenience.

• Streamlining Personal Tax Processes: Let us simplify your personal tax processes for a hassle-free experience.

 

Eligibility for Tax Refund: 

 

You may be eligible for a tax refund if:

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• You haven't worked the full tax year (within the last 5 years).

• You earned less than the tax-free threshold.

• You were taxed using the wrong tax code.

• You worked in the construction industry under the CIS scheme.

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Submission and Payment Deadlines: 

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To complete your Self-Assessment report, provide the necessary documents, and ensure timely submission and payment:

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• Identity document (passport or National ID card copy).

• Proof of address.

• National Insurance number.

• Self-Assessment registration number (UTR).

• P60, P45, CIS statements, bank statements, and other income and expense documents.

• Bank account details.

 

Late Penalties: Failure to file on time incurs penalties, starting at £100, increasing with time. Penalties may be reduced with a reasonable excuse.

Registration/Cancellation of Self-Employment: Operating as a self-employed individual requires HMRC registration. Closing self-employment status if circumstances change is equally important to avoid unnecessary obligations. Failing to report on time leads to penalties.

Taxitta is your reliable partner in navigating the complexities of self-employment taxes. Let us handle the details, allowing you to focus on growing your business.

 

Penalties for late tax returns:

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Missing a self-assessment return deadline has some serious implications and the penalties for filing your self-assessment tax return late are currently as follows: 

• 1 day late – Automatic fixed penalty of £100. This applies even if you have no tax to pay or you have paid the tax you owe on time. This charge will kick in if you haven’t filed by 31st January 2023.

• 3 months late – £10 per day up to a 90-day maximum of £900.

• 6 months late – £300 or 5% of the tax due, whichever is higher.

• 12 months late - £300 or 5% of the tax due, whichever is higher.

• Increased penalties can apply if the withholding of information after more than 12 months is deliberate or deliberate and concealed.

These penalties are in addition to one another, so the minimum late filing penalty for a tax return that is 12-months late will be upwards of £1,600, depending on the tax liability. 

 

Penalties for late payment of tax

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The penalties for late payment of tax are as follows:

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• 30 days late – 5% of tax due.

• More than 5 months after the first penalty – 5% of outstanding tax due at that date.

• More than 11 months after the first penalty – 5% of outstanding tax due at that date.