As we are approaching 5 April, and the end of the 2018/19 tax year, I am being commonly asked questions about what happens next.
If you began working as a self-employed associate in September 2018, this will be your first tax return.
Here at PFM, the most useful advice we can give is to get your records in early.
Although the deadline to submit your tax return and pay the tax is 31 January each year, if you have a high tax bill, that leaves no time to gather the required funds, and adds additional stress to the process, I would advise getting your records to your accountant before June each year.
This also enables you to seek advice with the Net Pensionable Earnings (NPE) declaration.
So, what do you need to provide to complete the tax return?
- Payslips – your final payslip included each year will be March, which you will be paid in April
- Expenses – ask your accountant for a guide of allowable expenses. Don’t forget items from your training years can be included in your first tax return
- Employment information – could be your P45 and/or P60, if you are continuing with employment as well as an associate role
- Bank interest
- Any other income received – this can include rental income and dividends.
Your accountant should have some documents to help you collate the information and make the process easier.
One of the most common questions asked is regarding your employment and why these details are required, as you were taxed at source.
Your tax return will need to show the full year, even if part of that year you have been employed.
Any tax you have already suffered will be deducted, so you won’t pay tax twice on that income!
For more information visit pfmdental.co.uk.