Self-assessment refers to the standard tax return form that is completed by the self-employed and many business owners. It’s called self-assessment because it is your responsibility to work out how much tax you have to pay. we have collected the most often asked questions on Self-assessment tax return filing. Here we answer some of the most frequently asked questions about self-assessment tax returns.

1. Frequently Asked Questions - Self Assessment
Tax Return
Filing a Self-Assessment tax return can appear like a stern task, and usually
HMRC’s directions are complete of tax terminology that can be tough to filter around.
With the deadline coming, there are numerous things you’ll require to understand to
be ready to submit yours on time.
To simplify items, we have collected the most often asked questions on Self-
assessment tax return filing.
• Which expenses can be claimed against your income?
The thing to bear in mind is to claim expenditures that are fully and only business
related
Being a sole trader, you can claim expenses that are drawn against your income to
accomplish your taxable profit, or you can use clear expenses way. With a simplified
expenditure method, you work out your firm expenditures employing a flat rate
instead of working out the actual expenses.
• Why am I being asked to make a payment on account?
You will be asked to make an advance payment for next year's tax liability in case if
your current tax liability £1,000 more than your previous tax return.

2. • Do I need to file self-assessment tax return if I am a director of LTD
Company?
Directors of LTD company may need to complete personal tax return if they have
received dividend income from their LTD companies.
• How do I know HMRC have calculated tax correctly? As my estimated
tax calculation is lower and HMRC come back with a higher amount
payable.
The amount of tax you pay stand on your total taxable income from all sources such
as self-employment, rental income of the property, employment, pensions, dividends.
1. Personal Allowance Up to £12,570 0%
2. Basic rate £12,571 to £50,270 20%
3. Higher rate £50,271 to £150,000 40%
4. Additional rate over £150,000 45%
For queries about Self-Assessment tax, you can call HMRC. Lines are open 8am to
8pm on weekdays and 8am to 4pm on Saturdays.
• What if I have missed Self-Assessment tax return deadline?
Unfortunately, you will probably receive an automated penalty of £100 if you miss the
31 January tax return deadline. HMRC only allows the late tax return filing in
particular limited circumstances, such as the death of a close family member,
sudden illness or your own hospital stay. The best thing to do is get in touch with
HMRC as early as possible if you feel you are going to miss the deadline!
Let our self-assessment accounting specialist handle all your tax return situations.
Our team is vastly experienced in dealing with HRMC.
• What kind of things can I claim as a business expense?
You can claim for things like your vehicle, garments, working from home, and start-
up costs. The allowable expenses list is huge, with hundreds of potential things to
claim for.
• If I work from home. What expenses can I claim?
You can claim a proportion of your household expenses such as heat and light,
council tax, water rates, rent or mortgage interest and certain repairs when you work
for yourself from home. So, if your house has four rooms, excluding the kitchen and
bathroom, and you use one room partly for business purposes, you may be able to
claim up to one quarter of those costs.

3. There are several examples of how home-running costs may be apportioned on a
reasonable basis in HMRC's Business Income Manual.
Assuming that you own the house you are working from, you need to be conscious
of a specific tax rule. Normally when you sell your home, there is no tax to pay on
any profit that arises. If you have used any part of your house exclusively for
business purposes, then a proportion of any profit would become liable to tax.
Usually, rooms are not used exclusively for business purposes so this may not be an
issue. It does mean, though, that you may need to be careful to restrict the claims for
household expenses you make.