Your self-assessment tax return is a complete record of your tax filing for the relevant financial year. This needs to include everything relating to your personal income. Here we explain everything your accountant needs to know, to complete your self-assessment tax return accurately.
What Your Accountant Needs to Know to Complete Your Self-Assessment Tax Return
Here we identify what your accountant needs to be aware of to complete your self-assessment tax return accurately. This is not an exhaustive list so please check with your accountant if you are unsure. We have tried to include the most common items here.
Employment
For any paid employment you will receive a P60 in March or April each tax year or a P45 if you leave employment during a tax year. If you have two jobs in a tax year you will need to supply both the P45 and P60. Any expenses that you incurred during the employment that were not reimbursed by your employer, this could include travel, uniform cleaning and even use of your home office. You might also have a P11D from your employer for any taxable benefits you have, such as a company car or medical benefits.
Foreign Employment
If you have been working for an employer based outside of the UK you will need to include these details in your self-assessment.
Student Loan Repayment
If you have a student loan and it has not been repaid in full then you will need to include what student loan plan you are on. Bear in mind that you might be on more than one student loan plan and all of them need to be included.
Dividends
Dividends from investments both in the UK and Internationally and also any company dividends you may have received from your own company. If your company is registered with Prestige Business Management, we will keep these records for you.
Interest from Savings & Investments
If you have any savings interest or investment income, you should receive a yearly statement from the bank or provider with the total amount of interest you received during the year.
Pension Income
Pension providers will send you an annual statement, this might be in the post or online. You will need to report your state pension plus any private pensions. This includes lump sum payments that you may have received.
Pension Contributions
If you contribute to a private pension scheme outside of your workplace scheme you will need to include the total amount of contributions you made during the relevant financial year. The pension allowance has been increased to £60,000 from April 2023. However depending on your total income if it is over £200,000 your pension allowance might be reduced you can read more about pension allowance tapering here.
Child Benefit (high-Income charge)
If your income was over £50,000 then you will need to include how much child benefit you received during the tax year.
Self-employment
If you were self-employed during the year, then you should keep a record of your income and expenses including a category for those expenses, so this can be broken down in your return.
UK or international Property Income
If you are renting out a property fully or even as a holiday let then this needs to be included in your self-assessment tax return. You need to keep track of the rent received and any expenses such as mortgage interest, rates, insurance, ground rent, repairs and maintenance, and legal, management or other professional fees
Any Other UK Income
These might include Property Income Dividends (PID)
Charity Donations
If you have donated any money to a charity that has included gift aid, this needs to be included in your self-assessment tax return to reduce your tax liability. Most people don’t keep track of these but it’s an effective way to reduce your tax bill whilst supporting your chosen causes.
Capital Gains
While capital gains are generally related to property sales it also includes the disposing of any shares that you may have bought. It’s essential to keep track of the original purchase price of the shares and the date you sold them and how much for. Even if you made a loss you should include this because Capital Gains Tax losses can be carried forward.
Foreign Income
This can include interest, dividends, pensions, social security, land and property income, offshore funds, trusts companies or other bodies. If you do receive any income from overseas you need to include this along with any tax that may have already been deducted.
Who Needs to File a Self-Assessment Tax Return?
If any of these circumstances apply to you, within the last tax year, then you are required by law to file a self-assessment tax return. This includes, but is not limited to all those who are liable for self-assessment. If you are in doubt, talk to Prestige Business Management about your particular circumstances.
- Self-employed with an annual income over £1,000, before deducting allowable expenses or other tax relief
- Receives income from renting out property for over £2,500 after allowable expenses or over £9,999 before allowable expenses
- Left with untaxed earnings of more than £2,500
- An investor with savings or investments over £10,000 before tax
- An LTD Director of a for-profit business
- Earning over £50,000 plus claiming child benefits
- UK residents receiving foreign income
- Receives a taxable income of over £100,000 (23/2024 will rise to £150,000)
- Trustees of trusts of registered pension schemes
- Sole income is a state pension over the personal allowance threshold
- Making a profit from selling either shares or a second home
Filing Dates You Need to Know
- 5 October – Deadline to register for Self Assessment after the first year you become liable
- 31 October – File Self Assessment Tax Return – Paper copy
- 30 December – Inform HMRC if you want them to collect Self Assessment payments through your PAYE tax code if you are eligible
- 31 January – File and pay your Self Assessment tax return online
- 31 January – For businesses trading their first year – make your first, payment on account towards next year’s Self Assessment bill
- 6 April – New financial year begins
- 31 July – Second payment on account due date
What Records are Needed to Complete Your Self-Assessment Tax Return
It’s important to keep an accurate tax record, firstly for compliance with HMRC, but also to help you keep track of your cash flow and tax obligations, which will save you money on your tax bill. This needs to include everything relating to your personal income, not just your self-employment income or dividends from your company. This is what you need to report to your accountant to complete your self-assessment tax return accurately.
- Bank statements
- Certificates of loans
- Receipts for business expenditure
- Documents signed by you or you have received: personal pension plan certificates, birth or marriage certificates
- Benefits and expenses related to your income: P60, P45, annual pension statements, notes of taxable receipts and benefits
- Expenses or reductions of the employer calculation of your benefits such as receipts, credit card statements, mileage details, purchase records
Prestige Business Management Works for You
At Prestige Business Management we can help you understand and manage your tax planning. Find out what we can do for you. Call us today on 0203 773 2927.