Self Assessment Tax Return

What is it?
Will it apply to me?
How do I register?
What do I report?
Can Bookkeeping Synergy do this for me?

What is a Self-Assessment?

Self-Assessment is a system that HM Revenue & Customs (HMRC) uses to find out how much Income Tax and National Insurance you need to pay on any income which isn’t taxed at source. This is usually for self-employed workers, or for some other types of income, such as pensions or income from savings and investments.

Self-Assessment returns completed for (say) the tax year 06 April 2019 to 05 April 2020, are filed and paid for yearly with HMRC before the deadline of 31st January. If your tax liability is over £1,000 you will be required to make a payment on account the following 31st July. Penalties are incurred if filing deadlines are not met.

Will it apply to me?

As a general rule, anyone who receives income that isn’t taxed at source needs to complete a Self-Assessment. This includes sole traders, Limited Company directors, Partners in partnership and applies to pension income, savings and dividend income, profits from furnished property lets, rental income and benefits in kind. If you or your partner earn more than £50k and receive Child Benefit you would also be required to complete a return.

The complete list of who needs to complete a Self-Assessment is available online following the this link https://www.gov.uk/self-assessment-tax-returns

How do I register for Self Assessment?

If you meet any of the criteria (check on the website above) that mean you need to complete a Self-Assessment, the first step is to register. You need to do this by the 5th October after the end of the relevant tax year. For the tax year that ran from 6th April 2019 to 5th April 2020, the deadline for registration is 5th October 2020.

Registering for Self-Assessment isn’t an automatic process when you set up a Limited Company or register as self-employed, so you’ll need to notify HMRC of your situation. You can do this online https://www.gov.uk/log-in-file-self-assessment-tax-return

What do I report?

You would report all untaxed income along with any expenses incurred. Expenses can include stock, office bills, bookkeeping and accounting fees, sub-contractor payments, marketing and advertising costs, training for continued professional development, travel including fuel, parking and train fares But some things are not claimable and these include journeys to and from your place of work, clothing which is not branded uniform, entertaining clients. HMRC also have a list of simplified expenses for items such as mileage and home office.

Please contact our team who will be happy to assist in the completion of your return.

The Institute of Certified Bookkeepers


The Institute of Certified Bookkeepers is the largest bookkeeping institute in the world. It promotes and maintains the standards of bookkeeping as a profession, through the establishment of a series of relevant qualifications and the award of grades of membership that recognises academic attainment, working experience and competence.

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