Self Assessment Deadline Next Week- Act Now!

As we approach, what always feels like, the end of the longest month of the year, we are also approaching the self assessment return deadline. For those needing to file a return for the 21/22 tax year, these are due by next Tuesday (31st January 2023), so if you haven’t got yours done and dusted, it’s time to get cracking!

Do I need to complete a self assessment return?

The easiest way to check if you will need to complete a return is to use the tool on the HMRC website. However, in short, you will need to complete a self assessment return for the tax year if, during that year, you:

  • Were self employed and earned more than £1,000 in the tax year.
  • Were a partner in a business partnership.
  • Received more than £2500 in untaxed income (e.g. property rental). If less than £2,500, you should contact HMRC directly to discuss, or made any profit from selling shares, a second home/other assets and need to pay Capital Gains Tax.
  • Had income from savings/investments/dividends was £10,000 or more (before tax).
  • Had income (or your partner’s) was over £50,000 and one of you claimed Child Benefit.
  • Had foreign income, or lived abroad but received UK income.
  • Had taxable income over £100k.
  • You have received correspondence from HMRC saying you owe tax from a previous tax year (that has not been paid via tax code or specific payment) or stating that you need to complete a return.

Usually, you won’t need to complete a return if your own income is from wages/pension. If any of the above applies to you though, you will need to complete and submit a return for that tax year.

When does it need to be completed by?

If you are completing your return online, it needs to be filed by 31st January of the year after the end of the tax year in question. If you’re filing a paper return, you’re already late(!) as it need to be filed by 31st October 2022.

So, for example, for the 21/22 tax year, a paper return needed to be filed by 31st October 2022, and an online return by 31st January 2023.

The 31st January is also the date that any tax owed for the year is due. You will also be informed (by HMRC or your accountant if you have one) if you need to make additional ‘payments on account’ for the following tax year.

What if I am late submitting my return?

If you are anything up to 3 months late submitting your return, you will receive a £100 penalty. This increases the more overdue the return becomes, and will also increase if tax was owed and not paid on time.

So, make sure you aren’t caught out, and get that return filed asap!

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