Tick Tock! Time Is Running Out!

Almost 11 million people are required to submit a self-assessment tax return by January 31st each year. Most people are ahead of the game and have nothing to worry about, but a shocking 54 million people are still yet to submit theirs. The deadline for all online submissions is a couple of weeks away, and if you miss it, you may face a hefty fine.

Do I need to file a return?

If you are self-employed or are a company director, then you are required to complete a self-assessment tax return. In addition to this, if you earn money from renting out a property, then you also need to file one. An important thing to remember is that if you receive a request from HMRC asking you to file a tax return, you need to do it, even if you don’t owe any tax.

What do I do?

You will need a Unique Taxpayer Reference (UTR) and an activation code from HMRC. Once you have registered with HMRC, you should receive your UTR code within ten working days.

When filling out your return, you are expected to declare all of your income, including rental income, dividends, interest, and taxable benefits. It is always best to gather all of the relevant information before filing your return, as mistakes can be costly.

What if I miss the deadline?

The initial penalty is £100, but after three months, there are additional penalties. After three months you will be charged £10 every day, and this can add up to a maximum of £900. The price will go up even more if six months pass, and again at 12 months.

If there is a legitimate reason for you not filing your return, such as an unexpected stay in hospital or close family bereavement, HMRC may overlook it if you have proof.

Don’t be among the late-filers! You know when the tax deadline is, and the sooner you act on it, the better. If tax returns aren’t your thing, perhaps you should consider hiring an accountant to do it for you? We help self-employed clients every day, and it takes the stress and worries away from you. Please get in contact today to see what we can do for you.