You must complete a self-assessment tax return if you are self-employed, a sole trader or receive any form of untaxed income. Keep reading to find out more information about self-assessment tax returns, as well as the details you need to complete your self-assessment.
What is a self-assessment tax return?
Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. If you are in permanent employment, tax is usually deducted automatically from wages and pensions. However, people and businesses with other income must report it in a tax return. If you need to complete and file a self-assessment tax return, you must fill it in after the end of the tax year (5th April) it applies to.
Who must file a self-assessment tax return?
You must file a self-assessment tax return if, in the last tax year (6th April to 5th April), any of the following applied:
- You were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
- You were a partner in a business partnership
- You earned £100,000 or more
You may also need to send a tax return if you have any untaxed income, such as:
- Some COVID-19 grant or support payments
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
You can check if you need to submit a self-assessment tax return on the government’s website.
How do you complete your self-assessment?
If you did not submit a tax return last year you will need to register.
To complete your self-assessment, you will need the following information:
- 10-digit Unique Taxpayer Reference (UTR)
- National Insurance Number
- Details of your untaxed income from the relevant tax year, including income from self-employment, dividends and interests on shares
- Records of any expenses relating to self-employment
- Any contributions to charity or pensions which might be eligible for tax relief
- P60 or other records showing how much income you received which you’ve already paid tax on
There are two sections to a self-assessment tax return. The main section is SA100, which deals with:
- Taxed and untaxed income in the form of dividends and interest
- Benefits which include child benefit, state pension and blind person’s allowance
- Pension contributions
- Charitable donations
If you have income to declare as a foreign national (or dual resident), a company director, from property, from self-employment, from abroad or from capital gains you will also need to fill in supplementary pages.
Remember you do not have to fill in the short-form tax return (SA200) unless it is sent to you by HMRC.
Once you have completed your self-assessment tax return you will be told how much tax and National Insurance Contributions (NICs) you will need to pay, as well as any required payments on account.
You can find all the self-assessment forms and help sheets on the government’s website.
What are the tax return deadlines?
It is important HMRC receives your tax return and any money owed by the deadline to ensure you do not incur any penalties for late filing.
| Self Assessment | Deadline |
|---|---|
| Register for Self Assessment if you’re self-employed or a sole trader, not self-employed, or registering a partner or partnership | 5 October 2023 |
| Paper tax returns | Midnight 31 October 2023 |
| Online tax returns | Midnight 31 January 2024 |
| Pay the tax you owe | Midnight 31 January 2024 |
There’s usually a second payment deadline of 31 July if you make advance payments towards your bill (known as ‘payments on account’).
When is the deadline different?
If you want HMRC to automatically collect tax you owe from your wages and pension, you must submit your online return by 30th December. Please visit the government’s website to find out if you are eligible to pay this way.
If you are a trustee of a registered pension scheme or a non-resident company you cannot send a return online. You must send a paper tax return to HMRC by 31st January.
How do I pay my self-assessment tax bill?
There are many ways you can pay your personal tax bill but it is recommended that you choose one of the faster options below to make sure you don’t get penalised:
- Debit or corporate credit card
- Online or telephone banking
- In person at your bank or building society
- Clearing House Automated Payment System (CHAPS)
It is also possible to pay via direct debit or to send a cheque in the post if you aren’t submitting your payment close to the deadline. This is because it can take up to 5 working days to clear.
What happens if you miss the self-assessment deadline?
You’ll receive a penalty if you submit your tax return late or make a late payment. Even if your tax return is only one minute late you could face a penalty of £100 and the penalty will continue to increase after this time. HMRC also charges interest on any late payments.
If you complete your tax return after the deadline and believe you have a reasonable excuse for doing so it is possible to appeal for you to appeal against a penalty. Information about what is and isn’t accepted as a reasonable excuse, and how to appeal a penalty can be found on the government’s website.
Contact Fusion Business Services today and speak with one of our in-house personal tax experts
Please visit our dedicated self-assessment tax return page for more information. For advice and assistance with the submission of your tax return, please call our personal tax experts on 0800 2294020 or request a free consultation.
