Self-Assessment

HMRC uses the Self-Assessment Tax system to collect income tax in the UK. Taxes are usually automatically deducted from wages, pensions and savings through “PAYE”, but individuals and businesses with other income must report this on a tax return. You can pay your tax return online or on paper.

HMRC stands for Her Majesty’s Revenue and Custom, refering to the UK tax authorities. The company, also known as Her Majesty’s Revenue Services, is responsible for collecting taxes, paying child support, enforcing tax and customs laws, and paying employers minimum wages, in the UK.

When you are having difficulty paying your due taxes or know that you will not be able to pay an expiring tax bill in the near future, you should contact HMRC as soon as possible. HMRC may allow you to spread payments over several months, depending on your personal situation and how much you can afford. If you agree with HMRC to defer your payment for a period of time and stick to it, you should not be charged interest for late payments.

You must submit a tax return for self-assessment, If you are self-employed and earned more than £ 1000 / month in the year, a business partner, executor / manager, business manager who does not pay ‘PAYE’ tax.  You must also self-assess tax returns if you have other sources of non-taxable income.

If you are self-employed earning more than £ 1,000 / month in a tax year, you will need to submit self-certification to pay income tax on your income. If you want to know how to complete your tax return for the first time, here are the steps you can take.

• Register with HMRC.
• Obtain your unique Social Security number by following the instructions in the letter to set up your Government Gateway (GGA) account.
• Request the activation code for your Government Gateway account from HMRC.
• Complete the account setup.

If you decide to file the tax return in paper format, the deadline is October 31, 2021, midnight, or if you want to file the self-certification tax return online, the last date is January 31, 2022, midnight.

Tax evasion can lead to hefty fines, and the UK’s maximum penalty for tax evasion can also lead to prison terms. The penalty and the average penalty for tax evasion may vary.

The HMRC has the power to verify the personal data of taxpayers under investigation by issuing a “third party notice” to banks and other institutions. HMRC does not require the approval of a tax court for this notification.

Here are some typical items you might need for a given exercise.

• Information on self-employment income and expenses (both include loss of income).
• Information on the corresponding real estate income and expenditure.
• Information on saved income and retirement income.
• Information on eligible capital gains.
• Bank certificates of interest.

You can find the form on the UK government website, use this form and follow the instructions on how to claim an income tax refund if you accidentally pay too much. They will refund your money or you can contact us to resolve your problem.