Taxation Statements Made Simple By Means Of Self Assessment

self assessment

Tax returns made easy through self assessment

If you?re your own boss, organising your annual tax return can often be something you dread. Thankfully it needn?t be as intimidating as some may think; HM Revenue and Customs do what they can to make it more streamlined and help you work out how much you should be paying. It?s a method called self assessment, where all you need to do is fill out a simple form and pass it on to your tax office.

Register and get online

Before you start, you?ll need to contact your tax office in order to register with them for self assessment. They?ll determine whether or not you?re eligible to be part of the programme and will allocate you a reference number that will allow you to send in your annual tax return through the post or online. Many people choose the online process as it?s not only quick and easy to work through but you also get extra time to finish filling out the forms.

Getting everything in on time is incredibly important as failure to do so means you could be subject to some financial penalties. It?s a good plan to start getting everything together around March or April, which is the end of the financial year. HMRC normally send out a letter around this time that tells you to begin going through your company accounts and gather together everything you?ll need to complete your return, so getting ready in advance is a good idea.

How much will I pay?

Shortly after submitting your return you should receive a self assessment statement back from HMRC. This document outlines precisely how much tax you?re expected to pay for the previous financial year but make sure that you check the whole thing before making any payments. Once you?re happy that all the details are right, you should then begin organising how you?re going to pay.

While many people are fine with handing over everything in one lump sum payment, many others prefer the simplicity of a Budget Payment Plan. This is growing in popularity as it allows you to budget precisely for how much you?ll need in your account to cover payments that are spread throughout the year, on either a monthly or weekly basis. However you choose to pay, you?ll soon discover that self assessment is a great way to give you more power over your annual tax return.

Source: http://blog-finance-bankruptcy.mysurechoice.com/3434/taxation-statements-made-simple-by-means-of-self-assessment/

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