These deadlines may be extended in certain circumstances where the notice to submit a return is issued later than expected. There is an automatic penalty of £100 for late filing of the return. Further penalties may be due if the filing of the return is significantly delayed. These may run into hundreds of pounds. HMRC is increasingly emphasising the importance of good records. Failure to maintain adequate records may lead to inaccurate tax returns, which could result in penalties. Practical Tip Remember to keep all tax related documents such as interest statements, dividend vouchers, form P60 etc. Place everything in a folder through the year as it is received. Then you can simply hand this to us when we need to prepare your self assessment return.
business through a limited company need to know about corporation tax which taxes a company’s profits. Employing others in your business brings further obligations with Real Time Information reporting for PAYE and auto enrolment pension contributions responsibilities. We consider these issues later in this guide. Self assessment (SA) timetable Income tax and CGT are both assessed for a tax year which runs from 6 April to the following 5 April. The tax year 2024/25 runs from 6 April 2024 to 5 April 2025. Shortly after 5 April a notice to complete a return is usually issued by HMRC. Typically the return then needs to be submitted by: 31 October following - non-electronic returns (where you have requested a paper return from HMRC or downloaded a blank return). 31 January following - returns filed online.
Tax Tip Gift aid donations and personal pension contributions are also deducted from your income to arrive at adjusted net income for the purposes of calculating any reduction in your personal allowance. If your adjusted net income is between £100,000 and £125,140, you may want to consider making or increasing charitable donations or pension contributions in order to minimise the reduction in the personal allowance. There are specific rules which determine how much tax relief can be obtained for pension contributions which are discussed further in ‘tax and your investments’, which also contains details of relief for contributions to occupational pension schemes. Other taxes Individuals are not only taxable on the income they receive. You may own assets such as a precious antique, a second home or shares. If such an asset is sold at a profit this may give rise to a liability to CGT. Details of any capital gains may have to be included on the self assessment return if you receive one; alternatively you can complete a ‘real time’ return. Inheritance Tax (IHT) may be payable on the assets that you give to others in your lifetime or leave behind when you die. With rising house prices, this has become a concern for many more individuals. Many of those in business have to understand the principles of VAT because they will have to act as a collector of this tax. In addition, those who run their
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