A Quick Guide for Sole Traders to Complete & File Tax Returns
Every business owner must know how to complete and file their tax returns. Every self-employed individual who owns their business must submit what you call sole trader tax returns. It’s also known as Self Assessment tax return, which allows you to pay the correct income tax and national insurance amount. It may appear like a daunting chore at first. So if you’re having a hard time because you’re not yet familiar with the process, you may want to hire the help of Taxopia, which is a cheap and instant solution to all your filing problems.
Register for Self Assessment Tax Return
If you haven’t registered with HMRC yet, then you need to set up as a sole trader first. You’re applicable if you earn more than £1,000 from self-employment in the tax year, you want to qualify for benefits by making voluntary Class 2 National Insurance payments, and if you have proof that you’re self-employed. After that, the next step is to notify HMRC that you want to pay tax through Self Assessment. You can register online through the website, or fill out an on-screen form, print it out, and post it.
Completing & Submitting Self Assessment Tax Return
Once you have all the appropriate information, you may start filing your tax return. You can do it the traditional way by filling out the SA100 tax return form, printing it out, and sending it to HMRC. The deadline for this is October 31st of the year. The modern way is through submitting the Self Assessment tax return online. You can check the HMRC’s online service or some Self Assessment tax return software, such as GoSimpleTax. You’ll fill out either two forms, which are the SA100 and SA130s (which are for those with an annual turnover that’s below the VAT threshold for the given tax year) or the SA100F (if your annual turnover was above the VAT threshold).
Deadlines & Penalties When Filing a Self Assessment Tax Return
The deadline for filing the online Self Assessment tax return is every January 31st, midnight. It’s also the same deadline for any tax you owe. For paper filing, the deadline is every midnight on October 31st. So choosing the online option gives you an extra three months. Usually, there’s a second payment on account deadline, which is July 31st. So you mustn’t skip your tax returns because there will be penalties. It pays to be organized, or you can hire Taxopia. They are a great service that’s affordable. They are the cheapest solution for those looking to file their Self Assessment tax return efficiently and effectively every year.