We know how taxing (pun intended) it can be to navigate the complex maze of the UK tax system, especially as a self-employed sub contractor. But don’t fret; Subbie Tax is here to help. If you’re considering handling your tax return solo this year, or you’re just curious about the process, this guide will take you through the steps to get it right. However, if the thought of diving deep into forms and receipts makes your head spin, remember that Subbie Tax is the easy solution to ensure your returns are accurate and optimised.
1. Understand Self-Assessment Tax Returns
Before anything else, you must first understand what a self-assessment tax return is. As a self-employed individual in the UK, it’s your responsibility to report your income and expenses to HM Revenue & Customs (HMRC) so that they can calculate how much tax you owe. The official guide on the government website here gives a detailed overview.
2. Register with HMRC
If this is your first time submitting a tax return, you’ll need to register with HMRC as self-employed. This informs them that you’ll be sending a self-assessment tax return after the end of each tax year.
3. Collect All Relevant Paperwork
This is perhaps the most time-consuming part. Gather all paperwork related to your income and expenses over the past tax year, including:
- Invoices you’ve issued
- Receipts for business expenses
- Mileage
- Bank statements
- Details of any other income (e.g., rental income or dividends)
4. Calculate Your Income and Expenses
This is where the maths comes in. Work out your total income and business expenses. The difference between these figures will give you your taxable profit.
5. Submit Your Tax Return
Remember, the tax return submission and payment deadline for the tax year 2022-2023 is the 1st of January 2024. Make sure to submit everything by this date to avoid penalties. There are penalties for late filing, which can accumulate over time, so it’s in your best interest to be punctual.
6. Pay Any Tax Owed
Once you’ve submitted your tax return, you’ll be informed of any tax owed to HMRC or to you! Ensure you pay this by the deadline. If you’re unsure of how much to pay or need more time, it’s best to consult with a professional.
Why Consider Subbie Tax?
While the process above might seem manageable to some, many self-employed sub contractors prefer spending their time focusing on their trade rather than on tax paperwork. This is where Subbie Tax comes into play.
Expert Guidance: We specialise in helping sub contractors get the most out of their tax returns, ensuring you claim all eligible expenses and get the maximum amount on your tax refund.
Save Time: With Subbie Tax, you can avoid the end-of-year rush of gathering receipts and paperwork. We keep your information accurate throughout the year. With our handy app and reminders from your accountant, you’ll be on the way to maximising your tax refund.
Peace of Mind: Know that your tax return is in the hands of professionals who understand the nuances of the UK tax system, especially for sub contractors.
Ready to make this tax year a breeze? get in touch and let us handle the numbers so you can focus on what you do best!
While this guide provides an overview of the tax return process for self-employed sub contractors, it’s essential to consult with a tax professional or the official HMRC website for detailed guidance.
