The Making Tax Digital Tax for Income Tax Self-Assessment will be coming soon this means that the present Self-Assessment Tax Return as we have it now is an threatened beast. In the mean-time it is still necessary to file the Self Assessment tax return as normal. HMRC uses the form to determine your tax liability you are liable for as a small-business proprietor, freelancer or partner.
Utilizing an accountant to conduct Self Assessment tax retun
If you’re not fond of filling out your Self Assessment information yourself, which isn’t the case for many and you’d rather seek the help from an self assessment accountant. While this may be better than filling out a poorly-designed tax return, that doesn’t mean that your task is over.
You’ll still have to supply your accountant with the required information, so they can prepare and file your tax return on your behalf. A lot of people aren’t sure of what information they have to submit and that’s why we’ve put together an outline of the information you’ll need send to your accountant so they can finish self-assessment. Remember that the more information you provide to your accountant in the earlier you submit your information, the more efficient!
- Information on employment
- Pensions
- Self-employment income and the partnership income
- Income from investments
- Capital transactions
- Additional information
Employer information
If you were a director or employee, either through your own firm or not, you’ll have to report the salary you earned and the tax you’ve paid.
It is usually done by supplying your accountant with P60 or P45 forms that details your salary including tax and deductions for student loans. It is also necessary to inform them know of all Benefits in Form you are receiving which is why you should provide them with an original version of the P11D form that you use to record the benefits.
Pensions
There are two ways of notifying HMRC regarding your retirement plans. You can let them know about the income you get from one, and submitting any payments you contribute to pension schemes so you are eligible to claim tax relief on it.
If you are a recipient of an occupational pension, it is important to give your accountant your P60, or the proof of pension payment. Also, you must provide your accountant with the amount of pension you are receiving and also the notification letter in case you receive a pension from the state.
| Investment Income Type | Documentation Required | |
| Dividends paid by UK units and/or unit trusts comprising shares and/or units instead of dividends | Dividend/distribution vouchers which display the dividend received, the date received and the tax credit | |
| Expenses | The list includes all tax-deductible expenses e.g. professional travel, subscriptions to magazines, etc. | |
| The Gift Aid program or the Deed of Covenant payments | Details of Gift Aid payments, including the date, amount and charity made as well as covenant details | |
| Property-related income | Statements of income and expenditure, including mortgage interest statements | |
| Settlements, income from trusts and deeds of Covenant as well estates | R185 or income certificates with tax deduction | |
| Interest from building societies and banks | Certificates of interest, tax-deductible | |
| Other tax-deductible payments that are eligible for relief | Statements of the lender displaying interest paid and tax relief provided | |
| Income from overseas | Dividend vouchers as well as evidence of other sources of income | |
| Contributions to pensions you’ve made | Details of payments including dates, amounts and policy information with copies of documents | |
| Mortgages and loans that are qualified | Statements of the lender indicating interest paid and tax relief provided | |
| Student Repayments for loans | Information on payments made using dates and amounts as well as a copy of the statement showing the balance at 5 April | |
Also, you should provide information about any other tax-deductible benefits like the amount you received, including tax-free lump sums.
Partnership income and self-employment
Your accountant must be aware about the earnings you earn as a self-employed individual regardless of whether you’re a sole trader or as a partner in an association, or you run your own firm or receive dividends, as well as an income.
It is normal to require:
- Records of business transactions, which includes the bookkeeping
- Confirmation of your portion of any income from a partnership
- Interest income from partnerships and the tax deduction
- Other income from partnerships
Transactions with capital
It is also important to include information that is related to any capital transaction. Your accountant will need information about the following items that are relevant to you.
- Removal of the main residence when it is used in part for business
- Gains that exceed £12,300 in the tax year 2022/23
- Capital losses that can be declared
- Share securities sold, bought or taken over
- Real estate acquisitions and disposals
- Other charges for disposals, e.g. personal property/effects valued over £12,300
Further information
Your self-assessment accountant might also require further information prior to filing your tax return. If you have other income, in addition to those mentioned above, or any gains or losses You must supply your accountant with the information.
After they have received the information the accountant will be able to prepare an precise Self Assessment tax return on your behalf.
Are you in need of an accountant who is new to help you with Self Assessment time?
Contact our Account Ease team on 028 133 4599, or request an instant online estimate.
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