All about self-assessment tax returns

Everything you need to know about tax returns if you are self-employed

It can be one of the scariest things about being self-employed, can’t it, having to sort out your own accounts and tax returns? And where to find useful information too? The HMRC website is all very well but they don’t always explain things in a way that helps you understand it. Luckily for you, you’re not on your own. Our team of experts at DSR Tax Claims is at hand to help guide you through your tax return so that it is one less thing to worry about. If you check out our online calculator, you might find that you are due a tax refund too, or you can call our friendly team on 0330 122 9972.

What is a self-employment tax return?

If you are employed by someone else, you usually don’t have to worry about paying your taxes because they are collected by the PAYE system on your behalf. However, if you are self-employed, it is your job to calculate and pay your taxes to HMRC at the end of each tax year and the way that you will do that is through the self-assessment system run by HMRC.

Are you self-employed?

Sometimes it will be perfectly obvious whether you are self-employed, but as so often in life, there are a few grey areas. Some of the ways that HMRC might determine that you are self-employed are:

  • If you are personally responsible for your business – for what it does, its success or otherwise, what work it takes on and so on.

  • If you can choose who does the particular job or task. If you can choose to get someone else to do it, HMRC will likely class you as self-employed.

  • If you are responsible for providing your own workspace, equipment or tools.

  • If you are able to have more than one customer or client at any given time. You might not have more than one at the moment, but the key is whether you could have if you chose to.

Because you can sometimes benefit from more advantageous taxation regulations if you are classed as self-employed, HMRC take a very dim view of people who are employed by someone else passing themselves off as self-employed. If you are not sure where you stand, get expert advice from our friendly team on 0330 122 9972.

How do you pay tax if you are self-employed?

Firstly, you need to let HMRC know how much you have earned and you will do this by a self-assessment tax return. You need to make sure you fill it in correctly and that you get it to HMRC on time – delays mean fines! If you are a DSR Tax Claims client, then you can rest assured that we will deal with your tax return on your behalf so you don’t need to worry about that.

Once you have submitted your tax return and HMRC have informed you of any tax you may need to pay, if any, then you can pay by a number of methods. You can pay by direct debit, over the phone, by post or at your bank, a post office or with BillPay.

What other things can impact on your tax payment?

There are a few other circumstances that can arise to make things a little more complicated, although as a DSR Tax Claims client, we take that hassle away for you by dealing with HMRC on your behalf. So what else can impact on your tax payments?

  • If you are also repaying a student loan, this will also be handled through your self-assessment form. Any amount owing on your loan will be included in your tax bill. However, if you are making advance payments on account or voluntary payments to the Student Loan Company then they will be treated separately.

  • If you are also employed as well as having income from self-employment, HMRC can sometimes collect your self-employed tax through a tax code amendment to your employment PAYE. This all depends on how much you earn.

If you are self-employed, you might be eligible for tax relief on a range of your business expenses so check out our online calculator and if you are due a refund, call our team of experts on 0330 122 9972 and we could have that money back to you within 21 days from the date of submission to HMRC.

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