Ian Milner FCA 
Chartered Accountants and Tax Advisers

Tax returns and self assessment

SOLE TRADERS, PARTNERSHIPS AND THOSE WITH RENTAL INCOME 

We can help you prepare timely tax returns based on relevant information, to ensure you pay only the right amount of tax. 

The self-assessment regime is full of penalties, and HMRC enquiry powers are becoming ever more extensive. It is important for all taxpayers that returns are correctly completed and submitted on time. 

After April 2023, MTD will require all those businesses with income in excess of £10,000 per annum to submit details of income on a quarterly basis, followed by an annual tax return. There is also speculation that the tax year end may be changed to 31 March, or maybe even 31 December, instead of 5 April, to align the tax year end to a month end date, making it easier for the quarterly reporting of income. 

HMRC are already able to pre-populate tax returns with details of salary, interest, state pension, and other tax information. They also have access to land registry records to know who has bought and sold property and may have capital gains tax liabilities. Internationally, they exchange information with other tax authorities, so that they can identify income from foreign bank accounts, and ownership of foreign property and assets. 

All this to ensure that every taxpayer has declared their entire income and gains. 

They do not however have the information to know details of your trading income, or the tax deductions and reliefs to which you may be entitled and may therefore issue assessments of the tax due, based only on information which is readily available. 

It is important that all businesses understand how they should calculate and report profits that need to be declared so that they do not inadvertently overpay tax. 

COMPANIES 

MTD will also become mandatory for companies, who will also be required to make periodic returns from April 2026, but full details of the extent of those requirements are not yet available. 

If you need help with a corporation tax return, we should be pleased to hear from you. 

FEE PROTECTION SERVICE 

If HMRC are not satisfied with a tax return, they have the power to open an enquiry. As you will appreciate, the time and effort, and cost of dealing with these can be prohibitive. 

As part of our ongoing tax service for clients, we offer an optional annual fee protection service, so that should you have cause to deal with a tax enquiry of any kind, be that income tax/Corporation Tax, PAYE, IR35 status checks, VAT, or exceptionally this year, furlough claim checks, we can help you to deal with and respond to the enquiry. 

Our fees for dealing with this can then be paid in full without further cost to you. Please ask us if you would like further information and/or a quotation for this service. 

We cannot prevent HMRC raising tax enquiries, but we can help to ensure that you get the best possible support and advice, without having to worry about the cost.