How to fill in your tax return if you are self employed

If you are self employed, it is important to know how to fill for your tax return regardless if you are paid by PayPal, Cheque or Cash. You will be required recording the income you are getting. You should keep the spreadsheet in order to record the income with the outgoings. It is advisable that you should keep all the copies of the sales receipt with the invoices to be proof of the income that you get for seven years just in case HMRC may make the enquiry within your returns. The costs that you should report as the business expenses, they are the costs which are spent for the reason of your business alone. The business expenses that you can claim are protective clothing, training courses, accommodation, travel and equipments.

How to fill in your tax return if you are self employed

In order to claim the tax relief based on the expenses of your tax return, you will have to note these expenses in the tax return. The total amount which you had spent at the business expenses is then going to be deducted from the annual profits and income. You will be required to pay only the income tax which means that you are going to get a tax relief on the expense cost. Whenever you are working as a self employed, regardless of how much you make, you will have to submit the tax returns. HMRC is calculated based on the amount of the tax that you should pay according to the income you make every year.

When you miss the deadline of submitting the tax return, you are going to pay for the penalty and after three months, you will be charged monthly penalty.

When it comes to filling the tax return, many people find this task to be daunting. There are people who need to just tick some small boxes on the return form. Now many people are encourage filling online system but they can still file the paper return. When you file online, you should decide about the section that you will have to complete. The right pages will be created to be used for the return.for related information click on : http://www.pjstar.com/article/20160107/NEWS/160109535

The basic paper tax return comes with 8 pages; however HMRC can add some extra pages so that you can report about some type of gains or income depending on the circumstances. As a self employed person, you will have a place where you should fill the expenses and the income. In case you have the income that comes from abroad, you will have to fill in the special foreign papers. While submitting the return paper, it should be up to you to ask if you have all the section you should fill. You may download the paper tax return with its additional pages online. When you have submitted the paper return in the past, you will not be get the paper return anymore but you will be sent an email. When you use the paper return, you should make sure that you got all the papers needed and collect information that you should fill in. Whenever you find something that you do not understand, you should always ask to avoid making costly mistakes.

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