Don’t Miss the Deadline for Your Self Assessment Tax Return

The deadline for filing your online tax return for 2022-2023 is the 31st January 2024, and missing this deadline will result in late filing penalties. The paper tax return deadline was 31st October 2023 meaning any returns yet to be submitted should all be electronically filed and paper returns should all be completed. Ensuring timely submission of the online return is crucial to avoid penalties and ensure compliance with HM Revenue and Customs (HMRC).

• Your taxable income exceeds £100,000
• You are a self employed sole trader
• You are a company director
• You were a partner in a business partnership
• You received untaxed income such as dividends
• You had to pay the high income child benefit charge
• You received income from renting out property

If you receive any income from renting out property as a landlord, you will need to file a self assessment tax return declaring the income less any qualifying expenses you may have incurred throughout the year, these include agent fees, property service fees, repair costs, and some others. Discussing what is allowable with one of our accountants is advisable as they will be able to provide guidance and support in completing your return to ensure you pay the correct amount of tax as property owners.

Furthermore, we will be able to advise you on the different ways to structure your rental as to minimse your tax bill such as potentially operating through a limited company. Operating as a landlord can be complex and talking to an accountant can alleviate any stresses or concerns you may have regarding your tax.

Whether you let out a second home as a holiday let or own a number of properties you must register for self assessment and complete the supplementary pages to declare the income correctly.

Operating as a sole trader, if you earn over £1000 in the tax year, will mean you are eligible for self assessment. It is important that you keep track of your allowable expenses and income to ensure accurate reporting and maximise the available tax relief. For sole traders, the self assessment process is also how you pay your national insurance contributions (NICs) and obtain relief on private and state pension contributions. If you have only a small amount of self-employment income and can use the trading allowance, then you may not need to register with HMRC or complete a Self Assessment tax return.

You must register as a sole trader as well as for your tax return as to be allowed to pay class 4 NICs and to notify HMRC that you are working off payroll and therefore are responsible for completing and paying your personal income tax.

Seeking the help of an accountant as a sole trader can help you ensure your personal tax is in order and you are making the most of your allowable expenses as well as advising on the kind of expenses allowable for deductions. Furthermore, you can seek advice on incorporating your business to ensure tax efficiency.

Directors of limited companies must register in order to report dividend income from their company as well as pension scheme contributions and NICs. Capital gains tax is also included in your self assessment and must be accounted for if you are selling your business.

At Sherwin Currid we include personal tax returns for directors of companies we look after as well as one off services and will be able to guide you through the complexities of filling out and filing your return to ensure you meet the deadlines.

You may also need to file a self assessment tax return if you have income from investments, savings, dividends or foreign sources. These will involve extra pages to your return and can become complex depending on the exact situation meaning that if you do receive substantial income from any of these sources you should seek assistance to ensure accurate and compliant filing.

If your get all of your income from payroll working you may still have to submit a tax return if your income exceeds £100,000 or you are subject to the High Income Child Benefit Charge. It’s important to consider these factors to ensure compliance with HMRC requirements.

Payments for your self assessment tax bill are due by the 31st of January following the end of the tax year. This means it is very helpful to have completed your return well in advance of the deadline as to allow you time to organise the payments. Missing the payment deadline can result in penalties and the amount due will accumulate interest while it is due which will lead to you needing to pay more than just the tax that you owe.

HMRC’s payments on account system allows you to split up your tax bill into two payments, due by the 31st of July and the 31st of January. The system works such that if less than 80% of your income is taxed through PAYE you will pay half of the previous year’s tax bill by the end of January and July respectively with a balancing payment for the year due by midnight on the 31st of January, the same day as the deadline for your return submission, as well as the first payment of the next tax bill.

To understand this system of payment more you should contact an accountant who will talk you through the process and explain how much you owe HMRC at each point in the year. Tax refunds are also possible if you have paid too much tax through this system and can be explained to you if it is the case you are paying less tax through self assessment this year.

Accountants play a crucial role in completing your self assessment tax return in a timely and accurate manner. They provide expert advice on deductions and tax credits, ensure accurate calculations, assist with timely submissions, navigate complex tax laws, and help justify reasonable excuses for penalties. It is a good idea to let a qualified accountant save you time, money, and unnecessary stress when it comes to submitting your tax return.