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​Tax Guides

 

​Self Assessment

Self Assessment
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Tax Guidance

 

What is Self Assessment?

Employees have their income tax and NICs deducted from their pay prior to being paid. As a
self-employed individual, you will need to do this yourself.

A self assessment is what you use to report your income to HMRC and pay the relevant
income tax and NICs where applicable.

Who Needs to Complete a Self Assessment

 

If you are operating as a sole trader and earned more than £1,000 income from your self employment
business in a tax year, you will need to complete a self assessment tax return, although you may not be required to pay any taxes.

If you are operating via a limited company and paying yourself a salary over the lower earnings limit (£12,500 for 2019/20) in addition to, or instead of, dividends, then you will also need to complete a self assessment tax return.

Tax Return Deadlines

 

 

Key Dates

Register for Self Assessment - 5th October

Complete Paper Tax Return - 31st October

Complete Online Tax Return - 31st January

Pay Tax - 31st January

You should note that automatic interest and penalties apply for failure to file your tax return and pay your tax on time.

How to Register for Self Assessment

 

 

Step 1: Visit www.gov.uk/self-assessment-tax-returns/

Step 2: Follow the links to register

Step 3: Complete your registration. You will receive login details for the Government Gateway.

 

Payments on Account

 

A payment on account is an advance payment on your next tax bill. It is a way for HMRC to ensure that you can’t benefit from paying your tax in arrears.

You will need to pay in this manner if your previous self-assessment tax bill was more than £1,000 and you didn’t pay more than 80% of your taxable income through PAYE (in employment income), so for those in full-time self-employment, this is likely to apply.

Payments on account are paid twice a year (by 31st January in addition to the balance due for the previous tax year, and by 31st July). They each equate to 50% of your previous year’s tax bill.

For example:

Your total tax bill for the 2017/18 tax year was £5,000 which was paid by 31st January 2019.

You pay your first payment on account for the 2018/19 tax year also by 31st January 2019 of £2,500 (50% of the previous year’s total bill).

You pay your second payment on account for the 2018/19 tax year of £2,500 by 31st July 2019.

Your total 2018/19 tax bill is £7,000.

By 31st January 2020, you pay the remaining balance of £2,000 plus the first payment on account for the 2019/20 tax year of £3,500

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The Company

 

About us

Why Qdos?

 

Qdos Contractor are one of the leading providers of specialist contractor insurance services in the UK. Our online application process takes only a matter of minutes with all documentation issued instantly. Unlike many other brokers, we don’t hide our premiums until you've provided your details, as we are confident that our premiums, service and product are the best in the market. In addition, Qdos Contractor is one of the leading authorities on the IR35 legislation and have handled well over 1,500 IR35 enquiries on behalf of UK contractors.

 

Our History

 

Qdos began in 1988 as a tax consultancy business and has grown significantly over the past two decades, providing expert business services, products and advice. Over the years, Qdos has grown in both size and reputation as a trusted contractor insurance broker as well as an expert tax advisor. Our aim is to provide UK contractors with the assistance and service with IR35 issues they need as well as sustaining excellent quality and competitive premiums in the contractor insurance market.

Need Help?

 

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