Self Assessments Tax Returns
What is Self Assessment?
Self Assessment is a system Her Majesty’s Revenue and Customs (HMRC) uses to collect Income Tax. It is usually deducted automatically from wages, pensions, and savings. People and businesses with other income must report it in a tax return. It details an individual’s financial information like earning, expenditure, taxes, and national insurance in a particular tax year.
Self assessment tax returns must be completed once a year by either 31st October (paper returns) or 31st January (online returns). Your return declares how much taxable income you have earned in that financial year and lists any expenses or reliefs you may be eligible to claim. Under the Making Tax Digital initiative annual returns will be replaced by quarterly updates. You’ll need an online HMRC account for this purpose.
How to register and file Self Assessment?
Any individual with a set income can register for self assessment through the HMRC portal online and submit self assessment returns. Individuals can also submit their personal tax returns by mailing a paper form to HMRC. It’s a three-step process:
- fill in and send your tax return to Her Majesty’s Revenue and Customs (HMRC)
- go back to a tax return you’ve already started
- check your details, view returns, and print your tax calculations
Do I Need to File a Self Assessment Tax Return?
Yes, if:
- your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on)
- your income from renting out property was more than £2,500 (you’ll need to contact HMRC if it was between £1,000 and £2,500)
- you earned more than £2,500 in untaxed income, for example from tips or commission
- your income from savings or investments was £10,000 or more before tax
- you need to pay Capital Gains Tax on profits from selling things like shares or a second home
- you’re a director of a company (unless it was a non-profit organisation, such as a charity)
- you, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
- you have income from abroad you need to pay tax on, or you live abroad but have an income in the UK
- your taxable income was over £100,000
- if you earn over £50,000 in the 2020/21 tax year and make pension contributions you might have to complete an assessment to claim back the extra tax relief you’re owed
- you’re a trustee of a trust or registered pension scheme
- your State Pension was more than your personal allowance, and your only source of income
- you received a P800 from HMRC saying you didn’t pay enough tax last year.
You can also fill in a Self Assessment tax return if you want to make voluntary Class 2 National Insurance contributions. This will help you qualify for benefits such as the State Pension.
You usually don’t need to fill in a Self Assessment tax return if you’re an employee who has paid tax through the Pay as You Earn (PAYE) system. This is unless you earned over £100,000.
Income Tax Rates for the Year 2021/22
As per HMRC, the Income tax rates for the year 2021/22 are already defined. Income that is less than £12570 is considered a Personal Allowance and is excluded from tax deductions. Any income above £12570 is taxable as per fixed percentage.
| Band | Taxable income | Tax rate |
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
Why do you need a Self Assessment Accountant?
An accountant is worth their weight in gold when filing a self assessment return.
Lanop can:
- get advice on financial challenges you face in your business
- help you navigate through the ‘salary versus dividend’ minefield
- bring peace of mind knowing you are doing things correctly
- check your bookkeeping, ensuring that all sales and expenditure have been identified correctly
We use Cloud accounting software that helps us be precise and MTD compatible. But, like any software, the consequent data (tax return) is only as good as the data put into the software.
If there are any errors in categorising sales or expenses, or if your bank connection duplicates or omits data then your tax return will be incorrect. Lanop helps eliminate these problem by being a one stop shop for all your accounting needs.
Self Assessment Accountants in UK
People with more than one income streams can use Lanop’s self assessment service to eliminate the stress of filing accurate and timely tax returns. Our Self Assessment Specialists ensure that you pay the least amount of taxes possible by providing a quick, accurate and compliant return as part of our extremely cost-efficient service.
Lanop Has Your Back
Lanop Accountants eliminate the need to search for an all-encompassing accountancy firm. Our corporate headquarters in Putney, London provide practical and efficient solutions to all your accounting needs.
Our skilled tax and finance professionals work diligently to make your life simpler by reducing financial stress and making business models more lucrative and efficient in accordance with up-to-date regulations.
Zohaib Arshad
I have assisted a plethora of clients with their self assessments, annual Read More
Zohaib Arshad
Financial Accountant
Most of my time is spent counseling limited firms on all aspects of their financial and tax circumstances as a Financial Accountant. Many corporate business owners have turned to me for help with their business formation, including any early paperwork and laws. Small business owners can benefit from my high expertise and professional advice due to my
diversified experience in a wide range of industries.
Rehmat Hussain
Self Assessments are something that all of us must deal with. The Read More
Rehmat Hussain
VAT Manager
I am the Global Manager for VAT Returns at Lanop with more than 5 years of experience in accounting, tax, and finance. I am responsible for providing services to help sole traders with self-assessments, tax planning and other relevant accounting services. My realistic approach, extensive experience, and successful track record makes me your business’s best friend.
Client's Testimonial
Lanop Chartered Accountants have been working with Wandsworth Chamber of Commerce for several years now and we have been very impressed with the exceptional level of service and expertise. Not only are they approachable but regular conversations are encouraged and when help is required, the response is always friendly, timely and very professional.The annual report on our accounts goes way above anything we have received from other accountants and the advice is always helpful, constructive, non-judgemental and positive. I am always left with an impression that they are looking after the Chamber’s best interests at all times.
Steve Pinto
Chief Executive
Wandsworth Chamber of Commerce
Why should you choose us?
Digitalized Solutions
Quick Turnaround Time
Self Assessment Experts
Professional & Client Centric
Flexible Approach
No Surprise Costs
