Autumn is here which means self-assessment deadlines are looming. To help alleviate the stresses of this season for Stockport Accountants, IN Accountancy, be aware of the deadlines and start work on your tax return ahead of time. This post is here to remind you of the self-assessment process from start to finish and the key deadlines to put in your diary.
It’s not just self-employed people who have to send a tax return
There are many different reasons for sending a self-assessment tax return, some of these include:
- you earned untaxed income of £2,500 or more (for example from renting property or from savings and investments)
- you earned £10,000 or more from savings and investments (before tax)
- you made gains from selling assets subject to capital gains tax (such as shares, certain types of property)
- you acted as a company director for a private business
- your total income exceeded £100,000
- you earned untaxed income from abroad
- you acted as a trustee for a trust or pension scheme.
Deadlines for self-assessment tax return
There are 4 deadlines to remember.
|Paper returns||Midnight 31st October|
|Online return||Midnight 31st January|
|Tax payment||Midnight 31st January|
If you are new to self-assessment, you will have to register with HMRC before sending a tax return. Conveniently, you can also appoint someone to register and send your return on your behalf.
To register, go to the government website and fill in the SA1 form. You will need to provide basic personal details and why you have to complete a tax return. Registration can take up to 20 working days. You can send your tax returns by online or by paper. Make sure you register before the 5th October if you want to send a paper tax return. Once you’ve registered you’ll get a Unique Tax Payer Reference (UTR). Keep hold of this number as you’ll need this number to send your tax return.
If you want to send a tax return online you’ll need an account with HMRC. Just register on the government website and create a Government Gateway account. HMRC will send you activation code which will allow you to log in to your account.
There’s no need to re-register if you sent a tax return last year.
What you’ll need to include
You will need to provide information about the following where relevant:
- income from employment, self-employment, partnerships, UK property, foreign income and trusts
- giving to charity
- student loan repayments
- high income child benefit tax charge
- allowances you claim such as the marriage allowance
- capital gains information
- residence and the remittance basis.
The paper tax return is called SA100. You can print off a copy from the government website. The basic form doesn’t cover all income so there are additional sections to fill in. It is your responsibility to ask for additional forms you need. When you’ve completed your form (or forms), send it to the address on your most recent correspondence from HMRC.
Just so you are aware, trustees of registered pension schemes will have to send a paper form.
The process is the same as a paper return. However, the online form will help you by reacting to the information you provide, it will tell you which additional sections you need to fill in.
The Government Gateway account will let you save your progress and finish it later, so you needn’t worry about having to complete all the information in one sitting.
Deadlines for paying tax
There are two deadlines for paying tax:
- 31st January
- 31st July
- Once HMRC has your tax return, it will calculate the amount of tax you owe.
A first payment will be due on 31st January which is an advance payment towards your tax bill, this is half of your previous years’ tax bill.
If you have any other tax due from the previous tax year, you will have to pay it by midnight on 31 January. This sometimes called a balancing payment.
A second payment will be due on the 31st July.
However, you will not have to make a payment on account if:
- your last tax bill was less than £1,000
- you’ve already paid more than 80% of the tax you owe.
If you have any questions regarding your tax returns please contact email@example.com on 0161 456 9666.