Ultimate Guide to UK Self-Assessment for Small Business Owners: Everything You Need to Know
As a small business owner in the UK, managing your finances and taxes can be a daunting task. Self-Assessment is a critical component of your tax responsibilities, and understanding it thoroughly can save you time, money, and stress. This comprehensive guide will walk you through everything you need to know about UK Self-Assessment, helping you navigate the process with confidence and ease. Video: Russo aka Roni What is Self-Assessment? Self-Assessment is the system HM Revenue and Customs (HMRC) uses to collect Income Tax. It’s designed for individuals and businesses with income that is not taxed at source. Unlike employees whose tax is deducted automatically through PAYE (Pay As You Earn), small business owners must report their earnings and pay the appropriate tax directly. Who Needs to File a Self-Assessment Tax Return? You must file a Self-Assessment tax return if you: Are self-employed as a sole trader earning more than £1,000. Are a partner in a business partnership. Receive inco...