As we start into the New Year, filing your self-assessment is maybe not at the top of your to-do list. But missing the 31 Jan deadline could mean a fine of at least £100. The following includes a few key points to make sure you file your online assessment and pay any tax owed on time.
Most people pay tax through PAYE (Pay as you earn) and so aren't required to complete an online self-assessment.
However you need to complete a self assessment if:
- you are self-employed as a 'sole trader' and earned more than £1,000
- you are a partner in a business partnership
- you if earn any untaxed income from:
- renting out a property
- tips & commission
- savings, investments & dividends
- foreign income
If you are unsure whether you need to complete a self assessment, you can check on the gov.uk website.
If you are filing for the first time, you must register to do so and you'll get a letter within 10 working days (21 if you are abroad) which will contain your Unique Taxpayer Reference (UTR). You will need this UTR to enrol for Self Assessment online services. Further details can be found on the GOV.UK website.
When getting ready to complete your self assessment there are a few key points you should remember:
- don't leave it all to the last minute - if you aren't great at filing, spend some time gathering all the key paperwork in advance.
- know all the reliefs and exemptions available to you - it may seem like extra work, but claiming for additional reliefs can really add up.
- if you don't understand something, get some guidance - there a number of guides and videos available to help as well as information on HMRC. There is also a self-assessment help line, however, the closer it is to the 31 Jan deadline, the busier this line will be.
If you have any questions about self-assessment, our team is available to help.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.