Self Assessment tax returns can be a daunting and challenging task for many small business owners, freelancers, and partnerships. It involves gathering financial information from the previous financial year and submitting it to HM Revenue & Customs (HMRC) to determine how much tax is owed. While some people prefer the DIY approach, others prefer to use an accountant in Ramsbottom for their self assessment.

If you are considering using an accountant in Ramsbottom for your self assessment, there are several pieces of information that you will need to provide them with. In this article, we will take a closer look at what information your accountant will need from you and why it is important.

1. Personal Information


Your accountant will first need some basic personal information from you such as your name, address, national insurance number (NIN), date of birth, email address and phone number. This information helps identify who the taxpayer is so that everything matches up with HMRC records.

2. Income Information


Your income statement provides details about all money earned during the previous financial year through various sources such as wages or salary paid by employers or clients; dividends received on investments; rental income obtained from properties owned; profits made by businesses run independently as a sole trader or partnership.

If you have multiple sources of income or work part-time in addition to being self-employed this can get overwhelming quickly so keeping track of each source throughout the year makes it easier when filing taxes at year end.

3. Expense Records


Expenses are another critical aspect when preparing a Self Assessment tax return that accountant in ramsbottom require complete records of expenses incurred during the previous tax period which may include office rent costs/lease payments if applicable; office supplies like printers/copiers/furniture etc.; travel expenses like fuel costs/mileage calculations; marketing fees such as Facebook ads/Google AdWords campaigns etc.; insurance premiums paid out for liability coverage or worker compensation etc.

Keeping track of receipts and invoices is critical in this process as it helps to ensure that you don't miss any deductible expenses. It’s good practice to keep all records in one place so they are easily accessible when required by the accountant.

4. Tax Credits


There are various tax credits available for small businesses and self-employed individuals such as research and development credits, child care allowances, etc. If you qualify for any of these tax credits it's important to inform your accountant so that they can apply them appropriately on your self-assessment form.

5. Capital Gains


If you have sold assets such as property or shares during the previous financial year, then this will be treated as a capital gain which is taxable under certain circumstances. Your accountant will need information about these sales to be able to calculate the amount of tax owed on these gains accurately.

6. Pension Contributions


As a self-employed individual or small business owner, contributions made towards a pension scheme may be deductible from your taxable income hence reducing your overall tax bill at year-end which makes it an essential component of preparing Self Assessment returns with accountants in Ramsbottom.

Why Provide This Information?


Providing accurate information is critical when preparing Self Assessment returns with an accountant in Ramsbottom since HMRC can impose penalties if incorrect figures are provided leading up to fines or legal proceedings being taken against the taxpayer.
Moreover, having accurate records also provides valuable insights into business operations throughout the financial year allowing business owners to make more informed decisions based on historical data trends while keeping up-to-date with regulatory compliance obligations like VAT registration requirements etc.

In conclusion, using an accountant in Ramsbottom for your Self Assessment can save time and reduce stress while ensuring accuracy when submitting taxes however providing complete records of personal income/expenses along with other relevant details ensures compliance with HMRC regulations while helping prepare future budgets based off historical data trends etc., - making things easier come next tax season.