Self Assessment tax
Many people find completing their self assessment tax return daunting and time consuming. Some fail to submit it to HMRC by the on-line deadline (31st January).
In 2022 the total number was over 2.3 million
The penalty for failing to meet the deadline for self assessment tax is an automatic fine starting at £100. Further penalties for late payment are also possible. These include charges of £10 per day after 3 months which can rise up to £900. There are also additional charges levied at 6 and 12 months after the deadline
Tips for completing your return on time
1. Do it online
The deadline for paper returns is October 31st and if you are reading this in January the only way to do it is now online. This is not something for you to worry about and filling in a paper return can take a lot longer anyway. It can also be more labour intensive. Doing it online is usually quicker and, often, more efficient.
2. Get Organised
Make sure you have all your paperwork ready and in order. You will need documents such as bank and credit card statements, chequebooks, paying-in books and invoices and receipts.
3. Get support from a Licensed Accountant
If you are not confident about preparing and submitting your self assessment tax return or don’t have the time, getting a licensed accountant to do it for you can actually save you money. It can free up your valuable time which you can use to concentrate on your business. You can also benefit by knowing it has been done correctly and on time. Mistakes can be costly. As can missing the deadline.
4. Do it early
I tell all my clients, and anyone else who’s interested, to get their self assessment tax return done as soon as possible. There is absolutely nothing stopping you submitting your return in April if you choose to. The sooner you submit it the sooner you know how much tax you owe and can start to budget for it. Better still, in some cases, particularly in relation to CIS, you may have overpaid tax and due a rebate. The sooner you submit, the sooner that money is back in your bank account. It’ll also be one less thing to occupy your mind for the rest of the year.
5. Don’t leave it until January
This creates unnecessary pressure at a time of year when it’s least needed and can make for a stressful Christmas. If you have left it late and need some help, feel free to contact me. But not on Christmas Day! And preferably not on the 31st of January either!
If you have received a Notice to complete a self assessment tax return for the first time or have decided that you need some assistance, as your HMRC registered agent, I can help.