For many, completing a self assessment can be a daunting task but it doesn't need to be. There are steps you can take to make sure that your self assessment is completed accurately and on time.
This guide will help you understand the process of completing your self assessment so that you can stay on top of your finances and submit your tax returns easily.
What is a Self Assessment?
A Self Assessment is simply a way of telling HMRC how much income you have earned in the last tax year and paying the income tax and National Insurance that you owe.
Who needs to file a Self Assessment?
You'll need to file one if :
You are self-employed and you had income of £1,000 or more
You’re a director of a company (unless it was a non-profit organisation, such as a charity)
You earned £100,000 or more
You had savings or investment income of more than £10,000 before tax
You received income from abroad
You, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
You earned £2,500 or more in untaxed income, e.g. renting out a property, tips or commission
You received COVID-19 grant or support payments
You’re a trustee of a trust or registered pension scheme
If you are unsure, you can use the free online checking tool on GOV.UK to check whether it applies to you.
If you don't think you should be filing a self assessment but still receive a notice from HMRC asking you to do so, you need to respond quickly. Failure to submit your tax return could result in penalties.
You can also choose to fill in a tax return to :
claim some Income Tax reliefs
prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance
How do I register and submit my Self Assessment?
You must tell HMRC by 5 October if you need to complete a tax return and have not sent one before. You can tell HMRC by registering for Self Assessment.
Once you register, you must send your Self Assessment tax return to HMRC either online or by post by the relevant deadline.
What are the Tax return deadlines?
The self-assessment deadlines for the 2022/23 tax year are as follows:
Registering for self-assessment for the first time: 5 October 2023
Paper tax returns: Midnight 31 October 2023
Online tax returns: Midnight 31 January 2024
Pay your tax bill: Midnight 31 January 2024
If you make advance payments towards your tax bill (known as ‘payments on account’) you also need to be aware of a second payment deadline on 31 July 24.
To check if this applies to you, log into your personal tax account using your Government Gateway ID and you can view your latest self-assessment return. Doing so will enable you to see when your next deadline is and how much is due towards the bill.
What are the penalties if you are late?
If you miss the deadline for submitting your self-assessment tax return, you will be charged a penalty of £100. If it is more than three months late, you could be charged an extra £10 a day up to a maximum of £900.
On top of this, if you are late paying your tax, you’ll be charged:
5% of the tax unpaid after 30 days
Another 5% of the tax unpaid after 6 months
Another 5% of the tax unpaid after 12 months
You can estimate your penalty using this GOV.UK calculator if you have submitted your tax return late.
What do I need to complete my tax return?
It’s important to keep good records throughout the year. Not only does this make filling in your return easier, HMRC may check your return after you’ve filed and ask to see your records. You’re required to keep your records for five years after the 31 January
Information required will include -
Your 10-digit Unique Taxpayer Reference (UTR)
Your National Insurance number
A P60 from your employer (if you have one) showing your income and the tax you have already paid
A P45 if you have left a job in the current tax year
A P11D or P9D which shows any benefits and expenses
A summary of any rental income and expenses
Savings and investment statements showing how much you have earned in interest and other income like dividends
Documents detailing your self-employment income, including receipts, bank statements and accounts
Documents showing any contributions to charities or pensions that might be eligible for tax relief
How do I pay my bill?
You can pay:
through the HMRC app
using online or telephone banking (Faster Payments)
by CHAPS
at your bank or building society
You can no longer pay your tax bill at the Post Office.
If you want to spread your payments over time, you can set up a budget payment plan.
Here is how they work, and how to set one up.
Where can I find more help and advice?
It is important to make sure the information you provide on your tax return is accurate and that you submit on time to avoid paying penalties.
The HMRC announced on 7th December 2023 that they will focus its Self Assessment (SA) helpline on priority calls in the run-up to the filing deadline, with other enquiries pointed to its highly rated online services which can be found here.
Alternatively get in touch with us on 01452 618160 and we can submit your Self Assessment Tax Return for you.
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