Take Control of Your Taxes Through Self Assessment

For people who are working for themselves, the subject of tax can be a tricky one to navigate. Thankfully, as the number of people who are setting up their own businesses is increasing, HM Revenue and Customs are making it even easier to work out how much you need to pay. This system is called self assessment and it couldn't be simpler to use; just declare your income and profits, fill out a form and send it in.
Register and get online
Before you start, you'll need to contact your tax office in order to register with them for self assessment. Assuming that you're eligible for the programme, you'll then receive a reference number that is unique to you and will be able to submit your tax returns either online or through the post. Many people choose the online process as it's not only quick and easy to work through but you also get extra time to finish filling out the forms.
Not sending them in by the deadline means that you will be subject to some rather harsh fines for late submission. Of course, the easiest thing to do is start working on your tax return as soon as it's requested which is normally around April each year. You should receive a letter from HMRC stating that it's time to go through your company accounts and organise the requested information, so make sure that you're prepared in advance to make your life that little bit easier.
How do you know how much you should pay?
Once you've sent off your details, your self assessment statement will be returned to you soon after. This document outlines precisely how much tax you're expected to pay for the previous financial year but make sure that you check the whole thing before making any payments. The amount requested on your statement could well be incorrect so you should go through the information in detail to ensure you're not over or underpaying; only when you're completely satisfied that everything is right should you pay up and settle the bill.
Some people choose to hand over their payment in a single lump sum while others prefer to organise a Budget Payment Plan with the tax office. This is an increasingly popular way of dealing with your taxes as you're able to dictate a certain amount that will leave your account on a regular basis, meaning you know just how much should be in there every week or month to cover the payment. However you choose to do it, you'll see that self assessment is a straightforward way to make sure that your taxes are dealt with as simply as possible.