Successfully file your Self-Assessment if you are self-employed or run your own business using these top tips.
Check the Tax Year for Filing
Check with your accountant to ensure that you know the start and end dates for your self-assessment. This year’s filing covers the tax year from the 6th of April 2016 to the 5th of April 2017.
Check the Deadline for Filing
HMRC have an online filing deadline date with the last day for filing online being the 31st of January 2018. Note that to file your self-assessment online you will have to be registered with HMRC first. The registration process can take up to 20 working days and should be done in good time to ensure that you do not miss the deadline.
Check the Methods to Pay Tax Owed
On completing your self-assessment, you will have to pay the amount of tax owed to HMRC by the 31st of January 2018. Ensure that you have the funds and the means to pay any tax owing by the date otherwise you will incur a penalty.
The Following Groups Must Complete a Self-Assessment
These group are as follows:
- Those that have Income from rented property which is £2,500 or more
- Those that have Income from savings or investments which is £10,000 or more before tax
- Those that have Income from dividends which is £10,000 or more before tax
- A company director
- If you or your partner’s income is £50,000 or more and one of you claims Child benefit
Check the Penalty if you Miss the Deadline
If for whatever reason you miss the deadline for filing your self-assessment, you will be issued a penalty from HMRC. It is best to contact them to explain your individual situation and enquire if you will be issued with a penalty or not. Normally, the penalty for late filing is £100 if your tax return is 3 months late. But it will be considerably more if your tax return is later than 3 months or if you pay tax owing after the HMRC deadline.
Shoaib Aslam is the co-founder of Pearl Chartered Accountants, a UK-based chartered accountancy firm that has multiple locations across London. They are experts in helping startups and established businesses with all aspects of growth, strategy, scaling up, accounting and tax planning.