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

The deadline for submitting your self assessment tax return for the tax year 2022-23 is approaching soon and ensuring you have sent off your return in advance of this date is important. Filing your self-assessment tax return before the deadline has many advantages, including avoiding late fees, interest on late payments, and potential legal proceedings.
In this blog post, we will cover all the important aspects of filing a self-assessment tax return, from understanding the deadline and its importance to consequences of late filing. Additionally, we will discuss if you need to file a self-assessment tax return, when do you need to pay your tax bill and how an accountant can help complete your tax calculation and return.

Self Assessment Tax Return Deadline 2024

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).

Importance of the 31st January Deadline

Filing before the 31st January deadline is crucial for avoiding late filing penalties and unwanted stress. Timely submission provides ample time for balancing payments to HMRC, helping you avoid any penalties or surprises.
By submitting before the deadline, you can steer clear of the last-minute rush, ensuring that your self assessment tax return is accurately completed and submitted in a calm and methodical manner. This approach allows you and your accountant to ensure all of the information is correct and your income is accounted for, paving the way for an error free submission.

Consequences of Late Filing

Failing to submit your self-assessment tax return on time can lead to severe consequences. Late filing incurs a £100 filing initially with additional fines quickly ramping up if the return is not quickly submitted. Your unpaid tax bill also accumulates interest, this on top of the penalties increasing the longer the delay persists could lead to you paying far more than was originally needed.
Ensuring you have all of your records to hand and working with an accountant can help you avoid this outcome and submit your tax return in ample time before the deadline. Using digital filing helps to simplify the process and will help you reduce the likelihood of late submissions.

Do I Need To File a Self Assessment Tax Return?

If you need to submit a tax return for the 2022-23 tax year you should have already registered with HMRC and be aware of the income you need to report. There are a number of reasons why you are required to submit a tax return such as:
  • 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
There are a few other reasons for having to resister for self assessment which can be checked with this HMRC tool. Alternatively you can speak to one of our accountants who will offer advice on whether you should submit a personal tax return.

Deadline for SA Registration

The deadline for self assessment registration falls on the 5th of October after the end of the relevant tax year. The deadline for the 2022-23 tax year has already passed and therefore you should already be registered if you need to complete a return. If you have registered for and completed a return for the previous year you do not need to worry about registration as HMRC will automatically register you for the next year.
When you register you will be given a Unique Taxpayer Reference Number (UTR) that you will need in order to complete your return. It is a ten digit number that you receive in the post 10 days after registering for self assessment or setting up a limited company. Once you have this, along with your national insurance number, you can be sure that you are registered for self assessment.

Tax Returns for Landlords

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.

Tax Returns for Self Employed Individuals

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.

Business Owners Personal Tax Return

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.

Other Reasons for Filing Self Assessment Tax Returns

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.

When Do I Need to Pay My Personal Tax Bill?

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.

Payments on Account

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.

How Can an Accountant Help Complete Your Self Assessment?

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.