Tax return preparation tips: how to reduce your tax liability

 Whether you are running a business or working as an employee, paying tax is compulsory. Every citizen who is employed and has a taxable salary needs to pay tax, every year. Though one can not avoid paying tax, one might reduce the tax liability by doing a self-assessment.  Now the question that arises here is how to do self-assessment tax. Let's first understand what a self-assessment tax is and how to do it.

Self-assessment tax

The government collects tax in several ways, for example, advance tax, tax withheld at source, and many more. One such method the government uses to collect income tax is self-assessment tax.

Whenever one pays their tax, it's important to pay in total so that the return filing procedure can be easily finished. If the required amount is not delivered on time, the return filing procedure is declared invalid, which can put a negative effect such as interest accruing on the amount that should have been paid to the government, a penalty, and many more.

Self-employed people must disclose and pay any additional income that isn't automatically taxed to HMRC by submitting a self-assessment tax return. Online filing or mailing a paper tax form are both acceptable options. If you are not aware of how to do self-assessment tax, then you can take help from Parm advisory.

For more information visit our website:- Tax return preparation tips: how to reduce your tax liability

Location: United Kingdom

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