What do I Need for Self Assessment?

Posted by: Jannike Post Date: 7th January 2015

The deadline for completing your Self Assessment tax return is the 31st of January, and there are hefty fines for failing to submit it. If you’re doing your tax return for the first time, you’re probably full of questions about what to do, before you even get onto the HMRC website.

Let’s take a look at what records you should prepare throughout the tax year, and what you need in order to complete your tax return.

Profit and loss account

Gone are the days of keeping old receipts in shoe boxes, and filing handwritten accounts in dusty drawers. It can all be made much simpler by keeping your accounts virtually, using nifty accounting software.

You will need to show exactly how much profit your business has made over the the year. The easiest way of doing this is to keep a profit and loss account in a spreadsheet or your accounting software.

What do I Need for Self Assessment?

You will need to show exactly how much profit your business has made over the the year. The easiest way of doing this is to keep a profit and loss account in a spreadsheet or your accounting software.

As part of your profit and loss account, you will keep your trading account, which is a summary of all your sales, and the costs of making those sales.

You then need information about all of your other expenses, so that you can deduct them from your sales, giving your final earnings.

Income

Along with financial information about your business, you need to declare all of your income, whatever its source.

So, if you run a consulting service, but also rent out houses and have a pension, all of this information will need to be included. Make sure that, along with your business accounts, you keep records of all your other earnings.

Filing your tax return

With your records to hand, you can file your tax return on the HMRC website. To do this, you have to sign up for an online account with HMRC, for which you will need your 10 digit Unique Taxpayer Reference (UTR).

You’ll create a password, and be given a user ID, which will allow you to log in. You will also be sent an activation code in the post, so that you can use the online Self Assessment tax return service.

If you would like to be able to carry out your own accounting confidently, take a look at our short AAT Accounting to Run Your Business distance learning course.

Want to become a qualified accountant?

Get in touch below to find out how, or call us on

01332 613 688

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