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Self Assessment Tax Returns 2017-18: Everything in a Nutshell
Paying tax is not something that any of us want to think about, but if we put it off for too long we’ll get chased for it. To ensure you never fall foul of the rules, we’ve put together a simple walkthrough guide that tells you everything you need to know.
What is a Self Assessment Tax Return?
When you work for yourself you need to complete a self assessment tax return. Because you’re self employed, as opposed to being employed by a company on a fixed salary, you need to declare how much you’ve earned.
This applies to everyone from builders and freelance writers, to students and young people who are on gap years or working abroad.
I’m Working Abroad, What Do I Do?
If you’re working in the UK then you can just file a return online in about 5 minutes. Things get a little more complex if you’re working overseas, however, so it’s best to check with HMRC directly. That way you’ll be getting the most up to date and detailed information.
What Does Payment in Arrears Mean?
It means you always pay one whole tax year behind. That way you can save the money you need to cover your tax, and then send it off with a few clicks in your online banking.
When Don’t I Have to Pay Tax?
This is the part that most people jump to straight away, so well done if you have read the rest of the article first!
If your income from self-employment was less than £1,000 in the last tax year then you’re exempt. You should also be aware that tips and commissions only become taxable when they total more than £2,500. If you exceed that threshold, then you’ll only pay tax on the amount you earned above £2,500. Not a bad deal really!
Start your Self Assessment Tax Returns online