As we move into August, it’s time to start thinking about your self-assessment tax return. Whether you’re a seasoned freelancer, a new small business owner or simply someone with additional income that needs to be reported, understanding the key deadlines and tips for submitting your tax return can save you time (and unnecessary stress!).
Key self-assessment deadlines
- 5 October: Registration deadline
If you’re new to the self-assessment process, you need to register with HMRC by 5 October. This step is crucial for anyone who has started a new business, become self-employed or has a new source of income that requires a self-assessment. Missing this deadline can result in penalties, so make sure to get registered on time. You can register for self-assessment at GOV.UK here.
- 30 December: Return deadline for PAYE tax collection
If your liabilities are less than £3,000, your tax can be collected through your PAYE tax code. This is only feasible where your tax return is submitted before 30 December.
- 31 January: Filing and payment deadline
The final deadline for filing your self-assessment tax return online and paying any tax owed is 31 January. This date might seem far off now, but it’s surprising how quickly it can creep up on you, especially with the holiday season in between.
3 key reasons to submit early
Submitting your self-assessment tax return early comes with several benefits:
- Advance notice of tax position
Submitting your tax return early doesn’t mean you are required to pay your tax bill early! The tax will still be due in January, however you will have plenty of time to budget for the payment. Alternatively, your tax bill may be a pleasant surprise, allowing you to book a holiday or make an investment. Either way, the advance notice will help you plan your finances and cash flow better.
- Tax code amendments
The earlier you know your tax position, the earlier you can check your tax code is correct and, if not, amend accordingly. If you wait until January to provide your records, you may find that you have been under paying tax for 9 months prior. Delaying your tax return can result in unexpected changes in your tax code for the following year.
- Avoid penalties and interest
Filing late can result in hefty fines. Even if you miss the deadline by just one day, you could face a £100 penalty. Plus, it’s worth noting that interest in applied on day 1. After three months, daily penalties start to accrue. Getting your return done early ensures you’re not hit with these avoidable charges.
Tips for a smooth self-assessment process
- Gather your documents early
Collect all necessary documents, such as P60s, P45s, interest statements, and any other income records. Having everything in one place can make the process much smoother. If you’re not sure what documentation you need, ask your personal tax professional for help. We provide our clients with a handy checklist which you can download here. - Use HMRC’s online services
Register for HMRC’s online services to file your return. The system is user-friendly and offers guidance throughout the process. - Double-check your details
Simple mistakes can cause delays or issues with your return. Double-check your figures and personal details before submitting. - Consider professional help
If your financial situation is complex, it might be worth seeking professional help. Our Personal Tax team can provide valuable advice and ensure your return is accurate.
How can we help?
Preparing for your self-assessment tax return doesn’t have to be a daunting task. By keeping an eye on important deadlines and taking steps to submit early, you can make the process as smooth as possible.
Our Personal Tax team handles all aspects of personal tax return preparation and submission, ensuring accuracy and compliance while maximising your tax efficiency. Our diverse client base includes high-net-worth individuals, owner managed businesses and non-domiciled individuals.
If you would like assistance with your upcoming tax return, please email tax@haroldsharp.co.uk or call 0161 905 1616.