Filing a Self-Assessment Tax Return can feel like navigating a financial labyrinth. With complex rules, tight deadlines, and the potential for costly errors, it’s no wonder many people turn to professional accountants for help. At Richard Riley and Associates, we aim to take the stress out of this process and help you make the most of your finances. Here’s everything you need to know about Self-Assessment.
Who Needs to File a Self-Assessment Tax Return?
You may need to file a Self-Assessment Tax Return if:
- You’re self-employed: This includes sole traders and small business owners. Younger tax payers in this bracket need to consider their student loan repayments too.
- You receive untaxed income: Examples include dividends or earnings from a side hustle.
- You earn over £100,000 annually: High earners must file to adjust for the tapering of their Personal Allowance.
- You’re a landlord: If you rent out property on platforms like Airbnb or via traditional letting arrangements.
- You sell on platforms like eBay and Vinted: Regular sales or high earnings may classify you as “trading,” and profits could be taxable.
Unsure if you need to file? Contact Richard Riley and Associates so we can give you some clarity.
Specific Scenarios:
Airbnb Hosts
If you earn rental income through platforms like Airbnb, it’s vital to understand the tax rules. From claiming allowable expenses like cleaning and utilities to knowing your property allowances, we’ll ensure everything is properly accounted for – even as HMRC tightens its monitoring through new data-sharing agreements.
eBay, Etsy and Vinted Sellers
Selling on one of these platforms? If your profits exceed the £1,000 Trading Allowance, you may need to file a Self-Assessment. We can help you determine what expenses to claim, such as PayPal fees and postage costs, and ensure you’re compliant with HMRC’s requirements.
High Earners
If you earn over £100,000, your Personal Allowance starts to shrink – effectively increasing your tax rate. For every £2 you earn above this threshold, you lose £1 of your tax-free allowance. Our team specialises in tax planning for high earners, helping you navigate these complexities and avoid unexpected tax bills.
Key Deadlines You Need to Know
- Paper Tax Returns: Submit by 31 October following the end of the tax year.
- Online Tax Returns: File by 31 January.
- Payment Deadline: Pay any owed tax by 31 January to avoid penalties.
First-time filers must register for Self-Assessment by 5 October to avoid penalties.
Why Completing Your Self-Assessment Early Matters
Over 600,000 taxpayers missed the deadline last year, each incurring at least £100 in fines and this escalates and incurs interest at 8%. Missing deadlines isn’t just costly – it can also be stressful. Filing early ensures:
- More time to gather documents and avoid errors.
- Better cash flow planning for any taxes due.
- Less risk of penalties or interest charges.
At Richard Riley and Associates, we proactively manage your deadlines, ensuring you’re always ahead of the curve.
Why Use an Accountant for Your Self-Assessment?
Save Time and Reduce Stress
Tax rules can be complicated, but our experienced team makes the process seamless. We’ll handle all the paperwork, so you can focus on what matters most – whether that’s growing your business or enjoying more personal time.
Stay Tax-Efficient
We don’t just complete your tax return; we look at the bigger picture. From uncovering hidden savings to ensuring you claim all allowable expenses, we’ll help you minimise your tax bill and stay compliant. If you have a limited company with directors and shareholders, we can help explore your dividend options and ensure you take advantage of lower tax rates where applicable. Note that 50% shareholders don’t have to split dividends equally.
Avoid Costly Errors
Mistakes on your tax return can lead to penalties or even trigger an HMRC investigation. Our meticulous approach ensures your return is accurate and error-free.
Ongoing Support
With us, you’ll have year-round access to expert advice, reminders for payments on account, and guidance on new regulations. We can help you reduce your payments on account if you know your previous bill was a one off larger bill. We can also arrange for you to pay your tax bill via a monthly direct debit which helps with budgeting.
Let Richard Riley and Associates Handle the Hard Work
HMRC offers a wealth of resources, including webinars and guides, to help you navigate the process. However, if you’re short on time or concerned about accuracy, seeking professional support can save you time and stress. From the first conversation to the final submission, our team is here to simplify the process and help you make the right financial decisions. Whether you’re an entrepreneur, a landlord, or a high earner, we tailor our services to meet your unique needs. Don’t let the stress of Self-Assessment weigh you down. With Richard Riley and Associates, you’ll get expert support, peace of mind, and more time to focus on what you love.
Contact us today to learn how we can help you with your Self-Assessment Tax Return.