Taxation Services

Self Assessment Tax Returns

Self assessment is a system for working out and paying tax. You must complete a tax return every year if you:
  • are self-employed, either as a sole trader or in a partnership
  • are a company director
  • are earning enough to pay higher-rate tax
  • have complicated tax affairs (for example, if you earn income abroad)
  • have made significant capital gains (for example, from selling shares)
  • are asked to by the Inland Revenue.
Self assessment tax returns are issued in April each year and cover the year from the previous 6 April to 5 April. For example, the 2004-05 tax year covers the period from 6 April 2004 to 5 April 2005. Keeping the right records is essential. It makes it much easier to manage your business and complete your tax returns. It's also a legal requirement. Everyone must keep records of their income and any capital gains for at least 22 months after the end of the tax year. If you're in business, are self-employed as a sole trader or a partner you must keep the records Taking into account the various requirements of legislation we recommend that you keep all records for at least six years after the end of the accounting period or tax year. The records you need to keep depend on your circumstances. Make sure you keep enough information to back up what you say on your tax return. Basic records for individuals include:
  • details of any pay and taxable benefits received from an employer
  • bank statements and cheque stubs and paying-in book stubs
  • dividend vouchers for any dividends you receive
  • information on any state pensions or benefits you receive .
You also need to keep records of all your business income and expenditure. This will usually include preparing accounts, although these do not have to be sent with the tax return. Pierce Tax team will complete your tax returns and submit them to the Inland Revenue on your behalf. You can then be sure that you meet due dates and compliance requirements. We can also store all your records for you and then when you are ready have them confidentially destroyed.