Self-Assessment Deadline – Are You Prepared?

Who needs to file a self-assessment tax return?

Do I really need to fill this in? Why do I have to complete a tax return? As the deadline date approaches, these questions become more and more common. Fortunately, HMRC provides clear guidance on who is expected to file a self-assessment return.

You’ll need to file a tax return if, in the last tax year (6th April to 5th April):

  • you were a company director - unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car
  • you were self-employed - you can deduct allowable expenses
  • you got £2,500 or more in untaxed income, for example from tips or renting out a property 
  • your income from savings or investments was £10,000 or more before tax
  • your income from dividends from shares was £10,000 or more before tax
  • your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
  • you had income from abroad that you needed to pay tax on
  • you lived abroad and had a UK income
  • your taxable income was over £100,000
  • you had a P800 from HMRC saying you didn’t pay enough tax last year - and you didn’t pay what you owe through your tax code or with a voluntary payment
  • your State Pension was more than your Personal Allowance and was your only source of income - unless you started getting your pension on or after 6 April 2016

Claiming tax relief:

You may also want to complete a tax return to claim money back from HMRC for:

If you’ve been told to send a return:

If you receive a letter from HMRC telling you to send a return, you must send it - even if you don’t have any tax to pay. Non-filing can lead to penalties even if no tax is due.

If you used to send a tax return but don’t need to send one for the last tax year, we or you can contact HMRC to close your Self-Assessment account.

When Do You Have to File Your Self-Assessment Tax Return?

The deadline for annual self-assessment is Wednesday 31st January 2018 – which is now less than 3 weeks away. It’s time to ensure you are on top of your affairs and if you haven’t already done so you need to take action.

Time is of the essence

With the 31st January only a couple of weeks away, it is vital that you prioritise your tax return. If you haven’t already, you need to provide all your information to your accountant as soon as possible, because whilst we may be able to file online, it doesn’t always happen smoothly.

As we get closer to the deadline, the submission lines get busy, speed of submission slows and hold ups can occur if you suddenly discover that your information is incomplete or you don’t have the correct codes needed to file your return.

Remember, not only is your return due by 31 January 2018, so is any corresponding tax liability, so the sooner you know what you owe the sooner you can ensure payment will be made on time (or the sooner you receive your refund, if applicable!).

There are a variety of ways to pay your outstanding tax.

You can pay online or via telephone banking, with CHAPS payments or you can pay physically at your bank of the Post Office. With the date for payment drawing closer you may want to opt for a Faster Payment option to ensure no interest accrues on late payments.

Get your free Self-Assessment Guide and Checklist

If you’re still unsure about what needs to be done, then to help you navigate through the self-assessment journey we have prepared a free guide to Self-Assessment with a step by step checklists to ensure you don’t miss anything.

Alternatively give your accountant a call today so we can get you back on track.

 

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