{"id":8180,"date":"2014-01-21T12:40:26","date_gmt":"2014-01-21T12:40:26","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=8180"},"modified":"2024-01-15T16:14:20","modified_gmt":"2024-01-15T16:14:20","slug":"tax-self-assessments-beginners","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/tax-self-assessments-beginners","title":{"rendered":"Self-assessment tax returns for beginners"},"content":{"rendered":"\n

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Self-assessment tax returns.<\/p>\n\n\n\n

It’s one of those things that gets mentioned a lot, and everyone assumes that everyone else knows what it means.<\/p>\n\n\n\n

And maybe that’s the case. Maybe everyone who needs to know, knows.<\/p>\n\n\n\n

But then again, maybe not. If you’re anything like us, you might be wondering about the who, what and why of tax returns.<\/p>\n\n\n\n

So, if you’re not sure what one is, or if you’re getting in a flap over whether you need to complete one, don’t panic. Here’s our very basic guide to tax self-assessments.<\/p>\n\n\n\n

Skills required: none.<\/p>\n\n\n\n

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The (very) basics <\/b><\/h2>\n\n\n\n

First up: not everybody needs to do a tax self-assessment.<\/b><\/p>\n\n\n\n

If you do, HMRC usually contact you in April or May (just after the financial year end).<\/p>\n\n\n\n

If you pay tax through PAYE, you don’t need to file a tax return. <\/b>The system will have already deducted the right amount of tax from your salary.<\/p>\n\n\n\n

Simply put, the purpose of a tax return is to make sure everybody has paid the right amount of tax.<\/b> If you’re not a PAYE taxpayer, you need to declare your last year’s income and pay the right amount of income tax.<\/p>\n\n\n\n

However, tax returns also work in the opposite way. You can claim back the tax or VAT<\/b> on certain business expenses. This applies to things like mileage allowances, specialist clothing or equipment, subscriptions to professional bodies, or household expenses if you work from home.<\/p>\n\n\n\n

Even if you don’t need to file a tax return, you can still get tax relief on some expenses. There\u2019s more information on what you can claim as expenses here<\/a> and on HMRC’s website.<\/a><\/p>\n\n\n\n

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The who <\/b><\/h2>\n\n\n\n

Although HMRC get in touch with you, it’s a good idea to know if you’re one of the ones they’ll be getting in touch with. If you don’t complete a tax return when you’re meant to, you could face a \u00a3100 fine<\/a>.<\/p>\n\n\n\n

If you’re any of these, and you haven’t had a letter from HMRC, you should contact them today:<\/p>\n\n\n\n