Everybody wants to pay as little tax as possible. At CC Associates, we want you to pay as little tax as possible too!
You could probably prepare your own taxes.
You might not even make any mistakes.
But you will almost definitely spend more time doing them and pay more tax than you would if you let the tax specialists at CC Associates prepare your taxes for you.
Here are just a few of the reasons why you should have your tax returns prepared at CC Associates:
Self Assessment Tax Return FAQ
How do I know if I have to fill out a Self Assessment Tax Return?
If you get your pay through PAYE and receive no other income at all, then you don’t need to complete a Self Assessment Tax return.
You will need to fill one out if:
- You are self-employed or in a partnership
- You are the Director of a Limited Company, or a Minister of Religion
- You have rental income of £10k or more
- You get income from abroad
- You have income from your savings or investments of more than £10k, or from untaxed savings and investments of £2.5k or more
- You receive income from a deceased person
- You receive child benefit and your income is more than £50k
What do I actually need to fill out, and when? Is there a deadline?
- You fill out a form called SA100 and SA101. HMRC will send you these or you can fill them out online. You may need to do some other supplementary pages, based on the type of income you receive.
- You need to submit any paper copy of a return by 31st October.
- You need to submit an online version of a self-assessment tax return by 31st January.
- If you do not meet the deadlines, there are fines and penalties imposed. However, if you have extreme circumstances which lead to you filing late, such as a death in the family or hospital stay, or even a fire or flood, then you can always explain this to HMRC and they are considerate of such circumstances.
You need to keep these documents safe:
- Every invoice for anything you buy, and everything you sell.
- Your bank account statements
- Any paperwork relating to finance or loans you have for the business
- Basically, anything with a £ sign on it should be kept.
How you decide to keep these is up to you – some people like to use a simple spreadsheet, some write in a book, and some invest in software to help them. As long as you keep the records, use the method of keeping them, which suits you best.
How much tax will I pay?
You tax to pay HMRC will be based on how much profit you made. So this is everything you received from your customers, less everything you spent out in order to run the business.
The money you spent has to be a business expense, e.g. stock you bought, postage and stationary, bank charges, telephone calls etc etc plus many more.
The main things that you can not claim are things like gym membership, speeding and parking tickets, client entertainment etc plus many more.
You can get in touch with us to check a specific item and we will be happy to advise you.
How can I pay less tax?
If you record all your business expenses correctly, then you are off to a great start. Tax gets expensive when people can’t prove what they spent money on.
There are lots of other allowances that an accountant will be able to think about applying to your particular type of business too, so it’s a good idea to get professional advice. Don’t forget, accounting fees are also tax deductible!
We advise people to put around 30% aside for Tax and NI. If you always save this, then you should always have enough (with a little left over) to pay your HMRC bill on time with no problems.
HMRC should be informed of the mistake as soon as you notice it.
You will be given the chance to explain to HMRC how the mistake happened and they are very understanding about human error. If they find that you left income off your tax return or changed figures on purpose, they take a much dimmer view and you are likely to face fines and/or prosecution.
Click here to book a 100% free, no obligation consultation to find out where CC Associates can help to save you money on your taxes.