Are You Ready To File a Self Assessment Tax Return?

The self-assessment tax deadline is the 31st of January… Are you ready?

If you are in Self Assessment, you must complete a tax return (known as a SA100) each year, on which you need to show your income and capital gains, and claim allowances and reliefs.

Filing taxes when self-employed can feel daunting and confusing, so it’s important to know the facts before you start.

Do I need to fill in a Self Assessment Tax Return?

You need to fill in a tax return if:
● your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on)
● your income from renting out property was more than £2,500 (you’ll need to contact HMRC if it was between £1,000 and £2,500)
● you earned more than £2,500 in untaxed income, for example from tips or commission
● your income from savings or investments was £10,000 or more before tax
● you need to pay Capital Gains Tax on profits from selling things like shares or a second home
● you’re a director of a company (unless it was a non-profit organisation, such as a charity)
● you, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
● you have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK
● your taxable income was over £100,000
● if you earned over £50,270 in the 2023/24 tax year and make pension contributions you might have to complete an assessment to claim back the extra tax relief you’re owed
● you’re a trustee of a trust or registered pension scheme
● your State Pension was your only source of income and was more than your personal allowance
● you received a P800 from HMRC saying you didn’t pay enough tax last year.

There is a tool on GOV.UK to help you understand if you need to do a tax return.

What Are The Deadlines?

• submit your return by midnight 31 January 2024 if filing online
• pay the tax you owe by midnight 31 January 2024

If you fail to meet one or more of these deadlines, you might be charged a penalty fee and interest on late payments.

Here are some tips:

• Don’t miss the deadline – If you don’t meet the deadline, you may face a fine from HMRC, so don’t leave it until the last minute. You’re also more likely to make mistakes or miss out important information.
• Keep good records – Use a separate business bank account, as well as accounting software (or work with us!) to track your income and expenses throughout the year.
• Keep good records (such as bank statements or receipts) to fill in your tax return correctly.
• File online – If you don’t already, or it’s your first time filing a self-assessment return, you can register to file online. This makes it easier to upload all the information that HMRC needs from you.
• Seek advice – Please get in touch with us for guidance on this, so you can focus on what you do best—running your business. We’re here to help!

Get in touch with our friendly team – call 020 7183 8241.