HMRC will require a personal tax return from you, known as a Self Assessment, if certain income received was not taxed at source and you are paid the gross (before tax) amount of it. Wages and pensions usually have tax deducted before they are paid to you, and therefore no further tax will be owed to HMRC, but if you are self-employed with income greater than £1,000 in the tax year, are a partner in a business partnership, receive rental property income, savings, investments, shareholder dividends or have any foreign then HMRC will usually require you to complete a Self Assessment tax return from 06 April to 05 April in the year of receiving the income. Other less common reasons for triggering the need for a one-off Self Assessment can include the sale of assets and the need to pay Capital Gains Tax (CGT) on them, and if you have any other unusual income throughout the year.
We can register you for Self Assessment tax and handle the production of your tax return using the latest HMRC-recognised software before sending it to you for approval and digitally submitting it to HMRC in good time before the 31 January deadline. We are able to prepare and file tax returns for new clients at short notice, even towards the very end of January.
Each year, we provide a reference page to each client which lists every possible income source, and we would encourage you to read through this to consider whether or not you should file a Self Assessment. Our PDF list can be downloaded by clicking here > 2022-23 checklist
We can complete a simple Self Assessment tax return (containing only P60s) for as little as £175, with a complex tax return being charged from £290.
What will happen if I don't make the 31 January deadline?
The UK tax year ends on 05 April and HMRC generously give you almost 10 months to compile your information and submit a Self Assessment tax return. An extension can sometimes be granted if you contact HMRC as soon as possible before the deadline to explain your circumstances and why you might need a little longer. If you miss the filing and payment deadline then automatic penalties are applied from 01 February, which escalate severely if not paid. These can be appealed if you feel you have a reasonable excuse.
What counts as a reasonable excuse?
Contrary to popular belief, HMRC are accepting of genuine circumstances that precluded you from submitting your Self Assessment by the 11:59pm 31 January deadline. Reasons such as an unplanned hospital stay, serious illness, death in the family or a home flood or fire are all considered reasonable excuses but of course, these will need to be backed up with evidence and it will still be down to HMRC’s discretion. At the opposite end of the spectrum, HMRC publish a humorous annual list of the most outlandish excuses for taxpayers not making the deadline such as ‘the dog ate my tax return, and all of the reminder letters’, ‘my tax return was on my yacht, which caught fire’, ‘I store my paperwork in the garden shed and it got eaten by rats’, and ‘my mother-in-law is a witch and she put a curse on me’.
How long does my tax refund take to process?
Upon submission of your Self Assessment, HMRC will usually send the refund to your nominated bank account within 2 weeks. If it is an unusually large refund or HMRC choose to conduct further security checks on your account then this can sometimes take a little longer. We are able to contact HMRC on your behalf using our dedicated accountants’ phone line to check the status of any refund.
When can I stop filing a Self Assessment?
Just because you no longer meet the criteria for filing a Self Assessment tax return doesn’t mean you should just stop completing one. You can contact HMRC, or we can do this on your behalf, to explain why you think you should no longer be required to file a Self Assessment. If HMRC agree, you could be entitled to have any tax paid over to HMRC for that year refunded as well as being out of the Self Assessment system.
I've tried phoning HMRC, but the hold time is too long
This is one of the most common frustrations we hear about HMRC. Accountants and authorised agents have access to dedicated HMRC phone lines which bypass the long wait times encountered by individuals. Once we have obtained authority to act as your agent, we can contact HMRC and get immediate answers to any issues.
What information should I include on my tax return?
Each year, we produce a guide page for clients which includes a list of all possible income sources and we are happy to send this when you contact us.
How much does LR Accounting charge for a tax return?
We charge £175 for a simple Self Assessment tax return, and from £290 for a complex Self Assessment tax return.
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