The Process of Filling a Self Assessment Tax Return.
In as much as you are able to read and master all the guidelines with respect to how you can fill your tax assessment form, you will discover that it is a pretty smooth and fast process that you can do in a matter if minutes. Basically this tax assessment return is meant for students who makes money through self employment. Study have shown that about eight percent of the student have a unique business that they do.
When you work for your self you decide to make big money and have total control of your finances. The more you work hard, the more you make more money to your self. But even as you have the total control of your finances, you do not have the control over your tax and this is the reason why you need to submit your self assessment tax return every January each year.
This may seems like a very complicated work that will take the whole of your time but if you go through this write up critically, you wil discover that it is a small work that can be done within minutes.
Why You Need to Fill Your Self Assessment Tax Return
The following are some of the basic reasons that will warrant you to fill your self assessment tax reform.
a) If you have earned more than 2,500 pounds in an untaxed income.
b) If your self employment incomes is above £1,000.
c) If the savings you have from investment is more than £10,000, then you will need to fill your self assessment tax return.
d) If you are a director of a company except maybe it is a charitable or non profit company.
e) When you are a trustee of a trust or registered pension scheme.
f) When your taxable income is above £100,000.
Voluntarily you can as well fill your self assessment tax return because this may qualify you to receive the state pension.
Ways to Submit Tax Return to HRMC.
The HRMC is a non ministerial department of the UK government that is solely incharge of collecting revenue. And the following procedures are required in other to submit your tax return to them.
1. Register with the HMRC. Before you can make any submission of your tax return, it is essential you register your self down, so they whether you are self employed, a partner in a business or maybe non self employed, this registration is just once and after that you can be making your submission every year but in a situation where by you skipped a year without making the submission, then you will have to do the registration again. Upon registration you will receive your Unique Taxpayer Reference UTR which can be use in other to fill and pay your tax. And finally a particular kind of code will be sent to you with the period of 10 workings days and you will use it to activate your account online with 28 days of receiving it.