Self Assessment Tax Return process

The purpose of this video is just to briefly explain how we do your self assessment tax return.

Start to finish process

So if you ever get stuck and you are not sure what you’re supposed to be doing, then this will take you through exactly the whole process from start to finish. So self-assessment tax return is for the year, normally the 6th of April to the 5th of April, but I know some people have a 30th of April year end, a 31st of March year end, um, a 31st of August year end. It really depends on what happened when you set up your business all the way back when you first started being self-employed, but they all fit into a general tax year. So it doesn’t matter what your year end date, you will still have to go through this process. So here we go.

Check list

Now, the first thing that normally happens is I will send out a checklist. There will be a word document that explains what all the information is that you might have, for example, your PAYE income self-employment dividends interest. So there’s a three page document that explains exactly what data we need for your tax return attached to that document. There is a manual tick list, or there’s a link to where you can find an online version and the online version.

You can easily upload any documentation you want us to have in an secure environment, for example, a copy of your [inaudible] or your P 45 C. What you could do is completely online checklist. You can either email us, the data, include the data in this document here, or if you’ve got access to the client portal, then you can log into the client portal and add your data in the documents sector.

Client portal

If you want to know more about the portal, we have them by all means, give me a quick call or email me, and then I’m sure that we can actually come up with some kind of link for you. So that is completing the checklist. So we get an idea of what income you have. The reason it’s important to do this is things change year on year. And I’m not going to know if all of a sudden you have another child or your first child, and you’re claiming child benefit. If you’re earning over 50,000 pounds and you have to pull back some of that child benefit, but if I don’t put it in HMRC, then get stroppy, um, potentially opening an investigation onto your tax return as to why you didn’t complete this box.

Confirming data

So that’s why it really is important to have this checklist from you, either the manual one or the automated one. So I get the checklist and then what I do, um, it goes into a run of work to be done, but I start to prepare your tax return and I use XL because then I can cross reference all the different cells using your bookkeeping records, embedded in, and then extract the data automatically from that.

You then get a summary of the data in an Excel format. So here’s just an example of what your income might look like. There’s a lot more information below that for things like your various taxes, et cetera. And that Excel file is linked to various different sheets for this type of income or any expenses. So having done that in Excel, I will then load into the HMRC portal, um, because it’s a free portal.

We might as well use something free in instead of having to charge clients 50 to hundred pounds for licence fees. So that’s why I signed up as your tax agent and get to your, um, unique tax reference number, your and I number. You get a code through that you’ve given to me and I sign up as your tax agent, then be able to do this on your behalf, on the HMRC system.

Tax agent

If I don’t sign up as your tax agent, we do have other methods of doing it, but it does incur costs. And I don’t like to charge people extra costs. So that’s where we go. We do a draught, we get it into the HMRC system, and then we send it to you for review. Um, if you’re not happy with numbers, we can do a video and try and talk you through the numbers, or it might be self-explanatory and be filled, feel free to ask any questions. Cause things you might not have come across before.

If this is the first time working with us, then you might not be sure, sure, what we’re talking about some of the time. And of course I might’ve forgotten something or you might turn around and say, Ooh, I forgot. I had employment from somewhere that only lasted three weeks.

Here’s my P 45. So things sometimes pop out the woodwork. So it’s really important. You do review it just to make sure I have captured everything, question and thing. We’ve got, look at the percentages applied, for example, a working from home allowance, your phone costs, et cetera. So if anything has to be apportioned, we agree the proportion to take, okay, you’re okay with it. Let us know.

Adobe sign

And then we will load it to something called Adobe sign, which is a secure signature process. Um, we later today, Doby sign Adobe sign sends it to you. And hopefully in the email, our instructions, I give as to where you find the signature page, please review the tax return again. It’s just a double check to make sure everything is in there that you think should be in the, for dividends, interest, child benefit, any coronavirus grants, et cetera, et cetera.

Once you have signed that document, it’s very exciting. It will automatically send you a copy and me a copy. So just be aware, Adobe sign, once you to apply the signature. And then at the bottom it says confirm. But if it’s your first time using it, you’ll probably find that confirm button is hidden behind the cookies bar. So once you remove the cookies bar, you can then see to press the confirmation button.

It will send a copy back to you. It was send it on to me. I receive a copy. Then I will go onto the HMRC website and I will tick the box that you’ve read and understood it. And I will submit your tax return. We get from there a submission receipt. I download this and send a copy to you by email to state that yes, your tax return has been filed and here’s the evidence it’s been filed.

Pay your tax bill

And then technically that’s you done, um, obviously you have to pay your tax bill. That would be helpful. I’m not paying it for you, but I don’t can’t do that. I will also then send you an invoice. Normally my work is billed to you at the end of the whole process, unless you send me your stuff in January and then I will invoice you for the work before I file it. Okay. Um, pay your tax bill in January.

Remember if you’ve got to pay a tax bill in July for the second payment of an account. You need to remember that HMRC sometimes send statements to say, you need to pay this. Sometimes they don’t. So just make a diary note of when you have things to pay. If you go into your government gateway or your digital personal tax account, you will see that the return has been filed.

It takes time (72 hours +)

So you can see when I submitted it, it tends to take 72 hours for it to go through all the HMRC systems. Then to get confirmed that they have received it. So at the moment, this one hasn’t yet been received because it’s only just being filed. Of course, any problems and feel free to email or phone or book an appointment in my diary. And I’m sure we’ll be able to help you. And that really is it. That is the self-assessment process.

It can take some time, depending on how busy everybody is. Depending on weather, you know, there’s things that we forgotten! Or if you haven’t provided all the information in one, go, then I have to keep picking it up and putting it down again. There is another video on the knowledge base about what type of records we want. If you look at the checklist that gets sent out at the start of the tax return season, then it will all be there. Okay. So thanks very much for listening. Thanks, Sam.


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