Simply put, self-assessment refers to a form that business owners, freelancers, and others need to send to the government to show their earning as well as its sources over the past months. For self-assessment to be possible, it is important for each business or person to be able to know how much they have earned so that they can calculate how much they are supposed to pay in taxes. So if you are a tax agent and have a number of clients that you work with, you need to understand how you can do self-assessment for your clients.
Here are some steps to take on how to do self-assessment for your clients:
- Get details of the clients
Assuming you are working with a new client who has not done any self-assessment before, you need to get the self-assessment number of the person or company as well as their postcode. Then, go ahead to the website of HMRC to register the new client. Within a few working days, a password will be sent to the postcode of the client. Let the client send it to you and use it to complete their registration.
- Acquire necessary information about the earnings and expenses
As earlier stated, the information about the earnings and expenses of the client is important to carrying out self-assessment. It is recommended that your clients should keep an up-to-date record of their financial details. You can encourage them to start using any accounting software that can help them track their earnings and expenses without the need for any physical records. Besides, digital records of their earnings will ease the process of filling their tax returns online. Once you get their financial details, go ahead to fill the forms.
- Consider allowable expenses
If you are working with a client who is self-employed or works from home as a freelancer, you can assist them with some allowable expenses so that their tax can be reduced to an extent. A few of the allowable expenses that can lower their taxes include travel costs, bank charges, staff costs, business-related clothing expenses, office costs, marketing costs, and the costs of running the business premises such as electricity and heating.
- Send their self-assessment to HMRC
Once you are done filling the self-assessment for your clients, it is time you sent it to the HMRC. For the sake of ease, you are advised to send it online; however, you can also choose to print the onscreen form and post it to the HMRC. Whatever option you want to use, ensure you send it on time and save your clients any trouble.
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