Individuals

Posted 06/06/2019

If you operate your business as a sole trade (i.e. not as a company registered with Companies House) then you must be registered with HMRC to obtain a Unique Taxpayer Reference [UTR]. If you are thinking of starting up self-employment, then we can talk you through the registration process and help ensure you complete the correct forms that HMRC require.

Once you begin trading, HMRC will expect you to submit a Self-Assessment Tax Return to them by the 31st January each year. This Tax Return is a summary of your sources of income; any employment or pension income you may have, the income and expenditure from your self-employment or rental properties you may own, the gains arising from sales of additional properties, or any other sources of income. Completing these forms, particularly while you’re trying to run your business, can be overwhelming and this is one way we can help. We can calculate the figures required for your Tax Return, advise you of the tax owed to HMRC and submit the form on your behalf. We can also do the bookkeeping in between, and provide you with accounts that reflect the information on the Tax Return.

As of 2020, Making Tax Digital will come into effect. This will remove the need for a self-assessment tax return and replace this with quarterly reports on earnings. This will give you an estimate of your tax bill before the final report so you can effectively manage your finances. All self employment or rental income and expenses will be required to be recorded using Cloud bookkeeping software.Please note that we will not send anything to HMRC without your permission.

Tags: individuals, tax return, sole trade, annual accounts, sign up, business set up


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