Sef Employed Tax Returns
If you are self-employed, you have to fill in a SA or a self assessment tax return each year. The questions that are asked on the form relate to the profits from the business and any other taxable income you may have like a rental income. This helps to calculate how much tax and National Insurance Contributions you are liable to pay. Though you have to keep records of all relevant information by law, it only helps making it easier when filing your returns.
Am I self-employed?
If this is your first time filing self-employed tax return, you are reading just the article. Let us first of all determine that you are self-employed and not an employee. If the answer to most of the questions here is a ‘yes' than you are self-employed:
- Do you make the final decision about how the business runs?
- Are you the one responsible for taking profits or handling losses?
- Do you have the authority to hire somebody to work for you on your own terms?
- Are you risking your own money through the business?
- Are all the main equipments required to do your job provided by you?
- Do you take a fixed price for a job regardless of the amount of time it may take to complete?
- Are you the sole decision maker regarding the type of work, timings of work and where the service is provided?
- Do you work for various people on a regular basis?
- Are you responsible to correct any unsatisfactory work at your expense and time?
In addition to this, it is also possible that you are self-employed partially and an employee of another business as well:
- If you are the director of a company
- If your job is through an agency
- If you a club's secretary or hold any other office
In these cases you are liable to pay tax and National Insurance Contributions as if you were an employee. If you still have doubts as to whether you are self-employed or not, you can contact your local HMRC tax office for further assistance. There is also a HMRC helpline (0845 915 4515) for those who are newly self-employed to answer all your questions.
How do I register myself as self-employed?
If you are newly self-employed, save yourself a penalty by registering through form CWF1 Starting up in business before the third month of your self-employment ends. The form is available through the local tax office or through HMRC's online form ordering services.
What all forms do I need to fill in for self-employment?
If you are registered as self-employed then the HMRC sends you a tax return every year in the month of April. This relates to the tax year gone by, from the 6th of April to the following 5th of April. Usually, these are the core pages of the self-employed tax return - forms SA 101 and SA 100. You may have to fill in some additional pages as well depending on the circumstances. Here are a few instances:
- § If your turnover was below £64,000, then you need to fill in the SA103S form as an additional; if your turnover was £64,000 or more, then you need to fill in the SA103F form as well.
- § If you also work as an employee while being self-employed, you are required to include page SA102.
- § If you are self-employed and are in a partnership then there are two scenarios. If the partnership only has trading incomes and have financial receipts like taxed bank and building society interest - you are required to complete the form SA104S; the form SA104F covers all other possible kinds of partnership incomes you may be receiving.
Mostly, it is best and easiest to fill and return your self-employment tax returns online. It offers an accurate and secure filling and the software calculates your tax automatically. If HMRC owes you money, you get an immediate acknowledgement and quicker repayment.
What are the deadlines for self-employed tax returns?
The self assessment deadlines and deadlines for sending in your return and paying any dues:
- § October 31st - by this deadline most of your paper tax returns should be filed.
- § January 31st - this is the deadline for online tax returns and sending in paper returns where it cannot be filed online.
- § January 31st - this is the deadline for paying what you owed the previous financial year. This is also for paying any ‘payments on account' or current year's tax bill.
- § July 31st - if there is any second payment due on your account, this is the deadline to pay it.
You must make sure to meet these deadlines to avoid any surcharges and penalties.
I am no longer self-employed, how do I file my tax returns?
Even if you are not self-employed anymore, you need to complete your main return and the supplementary self-employment form for the financial year in which you ceased to be self-employed. Use box 6 in form SA103S or box 7 in form SA103F to fill in the date when you stopped being self-employed. You can complete the rest of the form in accordance with your records.
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