Accountants
TB ACCOUNTS LTD

Self Assessment (Tax Returns)

The self-assessment system for collecting income tax was introduced in 1997 and shifts the responsibility for declaring income on the taxpayer's shoulders. There are strict deadlines you must meet to send back your tax return and pay tax owing. Missing them means incurring interest and penalties.


You are a likely candidates for self-assessment if...



Additionally, if you are an employee or pensioner the Revenue will need a tax return if...


Paying tax

If you are self-employed, you pay your tax in three stages. A first payment on account by 31 January during the tax year. This is normally half your previous year's tax bill. A second payment on account - which is the same amount as the first instalment - by 31 July after the end of the tax year. A final balancing payment (or you get a repayment) by the next 31 January - this is the bill calculated on the actual income returned for the tax year less the payments you have made on account.

Deadlines

The tax year runs from 6 April to 5 April the following year. The deadline for paying the tax you owe for that year is the following 31 January. You must also return your tax form by this date, if you ignore it, you will be liable to penalties starting at £100.


If you feel you fall under self assessment we will be happy to clarify this for you so please don’t hesitate to contact us.