This can be a newbie’s information to self-assessment, designed to assist sole merchants who’re simply beginning out or performing a tax return for the primary time. We’ll cowl fundamentals corresponding to registering for self-assessment, what documentation you’ll want and what software program can assist.
We’ll additionally embrace further data just like the upcoming 12 months’s deadlines and whether or not it’s essential to rent an accountant.
What’s self-assessment?
Self-assessment is the tactic used to calculate how a lot tax it’s essential to pay in your annual earnings.
Do I have to do self-assessment?
You’ll have to do self-assessment if:
- You’re registered as sole dealer and have earned greater than £1,000 (pre-tax)
- You will have a complete taxable earnings of greater than £100,000
- It’s a must to pay the Excessive Revenue Little one Profit Cost
Should you’re unsure, examine the federal government instrument which is able to let you know if it’s essential to file for self-assessment.
How do I register for self-assessment?
The federal government web site has a separate on-line instrument that you should utilize to register for self-assessment.
Should you’ve already registered, you don’t have to do it once more. Nevertheless, in the event you registered for self-assessment final 12 months however didn’t do a tax return, you’re going to should do it once more this 12 months.
Which paperwork do I have to submit self-assessment?
It will rely upon whether or not you’re employed or self-employed, and you probably have some other types of earnings corresponding to advantages or a rental property.
The place it applies to you, you’ll want:
- Distinctive taxpayer reference (UTR)
- Authorities Gateway person ID
- Nationwide Insurance coverage quantity
- Invoices you’ve issued
- Wage and earnings from different jobs
- Advantages out of your employer
- Revenue from pensions or state profit
- Revenue from rental properties
- Scholar mortgage plan and any sums that you simply’ve repaid
submit your tax return
When you’ve registered, you possibly can submit your self-assessment on-line at gov.uk.
Accuracy is vital with tax returns, so one factor you could do is preserve correct information of the next all year long:
- Any data round gross sales and earnings
- A document of each enterprise expense you propose to assert
- All VAT information (in the event you’re registered for VAT, that’s)
- PAYE information (you probably have staff)
- All private earnings information
Preserve all of those for at the least 5 years after your final self-assessment submission.
Do I want to rent an accountant?
Although there’s no requirement for an accountant, however you’d be leaving your self extensive open to expensive errors corresponding to miscalculations and incomplete data. Over-claiming and under-claiming on allowable bills are additionally widespread points, as just isn’t together with all earnings.
What’s extra, an accountant can ensure you declare the entire bills that you simply’re entitled to – and those you won’t find out about.
It’s additionally value checking who you’ve gotten your small business checking account with as some could have entry to an accountancy agency as a part of their bundle. Even when they don’t, enterprise financial institution accounts typically combine with accountancy platforms, making managing your funds considerably simpler.
What software program can assist with self-assessment?
Software program will be an infinite assist if you’re submitting your self-assessment.
The software program you select should meet the next necessities:
- Work with tax calculations that adhere to UK requirements and appropriate with our tax 12 months (April 6 – April 5)
- Has to combine with UK financial institution accounts
- Can deal with earnings from totally different sources – employed, self-employed, property, pension, and so on.
- Has to fulfill UK information safety necessities
- Sending out deadline reminders
From April 2026, software program should be appropriate with Making Tax Digital you probably have an annual earnings of over £50,000. You will need to use it to maintain digital information, submit abstract earnings and expense information each quarter and finalise your small business earnings at 12 months finish.
Sage’s self-assessment software program information transactions and permits you to take photos and scan your bills if you’re out and about. AI-powered automation kinds your bills into classes too. From there, you possibly can generate a filled-out self-assessment type, put it on the federal government portal and submit.
Take a look at Sage’s self-assessment software program to find extra
Vital self-assessment dates
Listed here are the need-to-know self-assessment dates all year long.
October 5: Deadline to register for self-assessment in the event you’re registering for the primary time
October 31: Self-assessment paper type deadline
December 30: Self-assessment PAYE tax assortment deadline
January 31: On-line self-assessment deadline; first ‘cost on account’ due (cost in the direction of your subsequent invoice)
April 5: Finish of the tax 12 months; deadline to assert overpaid tax for earlier years
April 6: Begin of the brand new tax 12 months
July 31: Second cost on account due
I’m nonetheless not sure about submitting my tax return – is there any help accessible?
When you have additional questions, search out recommendation from an accountant. The federal government additionally has a collection of content material that will help you together with your tax return, particularly as a first-timer.
It’s also possible to take a look at Sage’s accounting software program right here.
Learn extra
Six causes to sort out your self-assessment tax return early – Emily Coltman, chief accountant at FreeAgent, explores why it might be helpful to tackle the self-assessment tax return early
Do you have to register as a sole dealer or a restricted firm? – Mart Abramov, CEO of TaxScouts, shares the positives and negatives of being a sole dealer or a restricted firm, so you may make the only option in your rising enterprise
Finest enterprise financial institution accounts for sole merchants – We’ve rounded up a number of the finest enterprise financial institution accounts created with sole merchants in thoughts
