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Why You Shouldn't File a UK Tax Return
You may be wondering how and whether you should employ tax and legal advisors to prepare your personal tax returns. After all, you're a business owner who knows the ins and outs of running your own company. Do you really need to pay someone to help you figure out your personal finances?
This is a legitimate question. Depending on your unique situation, you may not need to file a tax return at all. There are a variety of self-employed tax calculators available online that can help you determine whether or not you need to file a UK personal tax return. Let's take a look at how they work.

How Do They Work? As the name implies, self-employed tax calculators work independently of any tax or legal advisors. This allows them to provide detailed guidance even if you don't have specific questions about how your personal taxes work. For example, the self- self employed tax calculator uk at tax-advice.com can provide a wealth of information even if you don't need to file a UK tax return. All you have to do is search for the most suitable tax calculator for your situation.
These tools take your financial data—such as your annual income and the value of your personal assets (like your home and car)—and crunch the numbers to give you a clear picture of how much tax you should be paying.
The results of your calculations will determine whether or not you need to file a return. If you do need to file a return, the self-employed tax calculator will also tell you the appropriate form to use. For example, if you're an individual taxpayer and you earn more than £150,000 ($219,850) and your income is above the personal tax threshold, you will need to file a UK Personal Income Tax Return (PITR).
Why Should You File A Tax Return? Whether or not you need to file a tax return depends on your unique situation. There are, however, a few general rules of thumb that you should follow regardless of your personal circumstances.
The first and most important rule is to always file a tax return. Filing an income tax return is a legal requirement in the UK. While it may seem obvious, people often forget about this crucial step. By following this rule, you will ensure that you don't run into any tax-related issues in the future. You can also use this opportunity to fill in any pending paperwork, like changing your details with the Inland Revenue or updating your NIC with a new business registration. Even if you don't have any pending paperwork, you should still file a return as it ensures you're keeping up to date with all the latest changes in the system. Don't forget to use the correct forms and filing dates, as well!
The second rule is to consult a financial or tax advisor if you're not sure which tax form to use or which filing method to follow. The key words are "if you're not sure". Even if you think you know what you're doing, trying to figure out your taxes without the help of a financial or tax advisor could still lead you down the wrong path. As noted, this is a complex subject and even the most determined individuals can find themselves mired in a sea of numbers and forms if they don't have the proper help.
A financial advisor can help you understand the current state of your finances and how previous decisions and transactions may have impacted your current situation. A good advisor will also be able to provide you with unbiased, objective advice on your tax situation. They may even be able to help you reduce some of your tax liabilities. You should never, ever, self-assess your taxes or try to figure them out on your own. The vast majority of people who do so, end up having to pay a huge sum of money in penalties and interest. It's cheaper and easier to pay someone to do it for you.
When Do You Need To File? This is a crucial point and one that cannot be stressed enough. You need to file your income tax return as soon as possible but it's not always easy to know exactly when this should be done. You should try to file as soon as possible but there are cases where this may not be possible. For example, if you're between jobs or if you're going through a really messy breakup and don't have the money to pay your taxes. In these situations, it may be best to put off filing until you have the resources to do so. Keep in mind that the government will not accept any excuses for missing a filing deadline. This means that if you're going through a really tough time and can't pay your taxes on time, you could potentially lose your home or business. In these cases, it may be worth it to file as late as possible so you have the best chance of getting financial relief.
How Much Can You Get Away With? Another important consideration when deciding whether or not to file a tax return is how much you can get away with. Everyone's situation is unique and one size definitely does not fit all when it comes to this. The more you know about what is acceptable and what is not, the better off you will be. The amount of taxes you can get away with varies depending on your earnings and the taxes you have already paid. If you earn a great deal of money, there are some forms of tax that you may not have to pay at all. Take stock of how much you've earned over the last year and decide whether or not you should file a return based on this information.
For example, if you earned £50,000 last year and paid £40,000 in income tax, there's a good chance you won't have to file a UK tax return. Your income is below the personal tax threshold and you haven't declared any dependants. In that case, you can get away with not filing a tax return at all. You may decide that you don't want to risk losing your home or business by not filing a return and so will file in the coming weeks or months. Be careful not to file a return if this is not in accordance with the law. The UK government and Revenue may still come after you if they discover you filed a return when you shouldn't have. They may even press charges and you could face serious penalties. Filing a tax return when you don't have to is against the law and you could end up in serious trouble. Be careful and don't try to beat the system. The government and Revenue will not play along if you try to cheat the system.
What About Self Assessment? Some people may advise you to simply go the DIY route and figure your taxes yourself. While there is nothing wrong with this approach, it is not the most practical or safe. Even if you do your research and make sure everything is correct, there's always the small chance you may make a mistake. Remember, too, that self-assessment is not suitable for everyone and it's definitely not recommended for those who earn significant amounts of money. If you do try to file your taxes yourself, make sure you have adequate training and experience to tackle this task. Doing so without any previous experience is extremely difficult and could turn out disastrous. Only a handful of people are equipped and qualified to do this on your behalf. This is simply not worth the risk. Calculating your taxes can also hide a multitude of mistakes. It may be a good idea to hire a private accountant to figure your taxes for you.
Where Can I File My Return? When it comes to filing your taxes, there are several options available to you. You may choose to file online through the IRS Free File website. There are several good reasons why this is a convenient and popular choice. It's incredibly user-friendly and everything you need is available at your fingertips. Even better, the whole process is completely free. As a taxpayer in the UK, you have the option of either using the NHS Direct Online Filing service or the Private Citizen Online Filing service. You should choose the former if you're new to the country as it makes the whole process easier and less stressful. It can also be a little cheaper.
Your other choice is to use a post office. You will have to go through the process of setting up an account and getting a PO box. You then need to fill out your tax return and send it to the Inland Revenue. Be careful when choosing a post office as there are a variety of middlemen that may ask for a cut of your refund. It's best to use a PO Box registered with Royal Mail so there are no doubts about receiving your funds. You should also be aware of how long it may take for your refund to arrive. Some people have reported waiting up to a year for their money to come through.

Homepage: https://www.taxd.co.uk/side-hustle-tax-calculator