Self assessment taxation is a system run by HMRC that allows an individual, for example a self-employed person, to manage their own tax affairs. It’s a big responsibility and a lot of trust is placed on the individual submitting these returns. Deliberately withholding information or misreporting it can lead to investigation and punitive fines imposed if HMRC deem that you have tried to abuse the system.
While those with relatively simple financial affairs are more than capable of submitting their own self-assessment returns it is always a good idea to seek the help of taxation experts at Pros Assist when there are business considerations. For example it might be that a small business proprietor can claim some tax breaks that they may not be aware of unless advised accordingly.
HMRC will inform an individual by letter at the start of the tax year that a return is due but you have until the end of that calendar year to actually submit it. Income and capital gains – profits on sales of assets can be included here – are declared. There is a section where you can claim tax allowances or tax relief where appropriate.
While individuals without salaried income (the self-employed, company directors are examples) should always submit a self-assessment tax return others may not be liable. Where tax is deducted from pensions and savings, for example, your tax code will take care of things there.
For those who wish to look after their own tax returns registering on line is a simple process through the HMRC website at http://www.hmrc.gov.uk and they will guide you through it step by step. You will be immediately issued with a ten-digit unique tax reference which gives you immediate access to your records in the future. However, if you are unsure about these matters it is advisable to seek help from the experts at Pros Assist.