Personal Tax Returns
If you are registered as self employed, trading in a partnership or are the Director of a Limited company then it is a legal obligation that you complete an annual tax return (also called self assessment). Likewise, if you are a higher rate tax payer you will also need to complete an annual tax return.
Completing your tax return can be a daunting task and is often one of those "must do" duties that is put off until the very last minute, which can inevitably cause more stress. If you are having trouble completing your tax return or don't know what you are allowed to claim on your tax return The Book Monitor can help to relieve that stress by calculating your income tax liabilities and completing your tax return on your behalf.
Frequently Asked Questions:
Q: Who needs to complete a tax return?
A: If you’re a director of a limited company, a partner in a partnership or registered as self employed you need to complete a tax return. If you are an employee then, unless you are a higher rate tax payer or you have a lot of income from investments, such as shares or dividends, then you probably don’t need to complete a tax return.
Q: What is classed as income when you are a sole trader/self employed?
A: Income covers payments you’ve received from customers (known as income from self-employment), interest you’ve earned on your bank account, dividend payments you’ve received from investments, income from a pension (both state and private pensions), rental income, some state benefits, pensioners bonds and trust income.
Q: Is there anything that isn’t included in the income section of a tax return?
A: Yes, you don’t include interest received on personal ISAs or savings certificates, the first £4,250 you receive in rent if you have a lodger in your home (NB this becomes £2,125 if letting jointly), working tax and child tax credits or any win you may have received on the premium bonds.
Q: What expenses can be put through on a tax return?
A: HMRC describes an allowable expense as being something that is “wholly and exclusively for carrying on and earning profits of your business”. This means you can include all expenses and costs associated with running your business. E.g. the cost of buying in any products that you sell, any wages you pay to staff, the cost of renting premises and utility bills, the cost of maintaining and repairing the premises and equipment you use, travelling expenses, finance costs, administration costs (which includes things like professional fees & relevant professional subscriptions, stationery, postage, printing, telephone, accountants fees, etc).