Your biggest responsibility of being self employed is completing your tax return. This is where you informi HMRC each year of how much money you made in a tax year.
Tax years run from 6th April to 5th April the following year. Tax is paid on any form of income, the two types which will likely relate to you are PAYE and self assessment income.
Your Tax Return can seem complicated but in it’s simplest form it’s a calculation that works out how much money you earnt and how much tax you should pay. The tax return is based on your earnings within a tax period. Your tax return is due after the end of the tax year, so after 5th April, and you have until 31st Jan the following year to submit it. Yes, you have pretty much 10 months to submit it. But….
Why wait? If you have money waiting to be returned to you then why not get it submitted as soon as you can so you can use that money for anything you want to do with it. As mentioned in our previous email, if you earn more that £11,500 and you’ve been tax at 20% you would be due £2,300. However, with our help and advice we could increase this refund for you.
We know that all of this can seem confusion but that’s why we are here to help you make sense of it all and complete your tax return for you. All you need to do is send us your information each month (if you are on our direct debit scheme – includes free tax advice throughout the year) or at the end of the year (if you pay at the end of the)