New year marks a busy period for nigh on 5 million self-employed workers, with the deadline for submitting online tax returns fast approaching.
You should already have registered for self-assessment with HMRC and received your 10-digit unique taxpayer reference (UTR). The registration deadline for the 2016/17 financial year was 5 October 2017.
You only need to do this once, so if you have registered in the past you don’t need to re-register each year. All you need is your UTR, your user ID and password to sign into your online account.
In this blog post, we thought we’d share some of our most frequently asked questions to hopefully answer some of your queries.
Do I need to complete a tax return?
You may need to complete a self-assessment tax return if you:
- are self-employed
- earned £2,500 or more in untaxed income (such as from rental property)
- earned £10,000 or more from savings or investments
- received profits from assets subject to capital gains tax
- were a company director
- received dividends of £10,000 or more
- received child benefit and you or your partner earns £50,000 or more.
When is the deadline for online self-assessment tax returns?
The deadline for submitting your online tax return is midnight on 31 January 2018. This is an important date as it is also the last opportunity to settle your tax bill with the revenue.
How do I pay my tax?
You can use your debit or credit card to pay your bill online through the government’s website.
However, you can only use your personal credit card until 13 January 2018 as HMRC is withdrawing this facility.
The Revenue will still accept payment from business credit cards thereafter, although higher transaction fees will apply.
Other options include:
- paying over the phone (have your national insurance number to hand)
- using CHAPS
- paying at your bank or building society
- via direct debit or cheque.
What happens if I miss the deadline ?
If you miss the deadline, you can expect to pay a fine of £100.
You will also be charged interest on late payments from the date the payment is due, while additional penalties are in place on a quarterly scale.
Our accountants can take your self-assessment duties off your hands, saving you time, worry and money.
Contact us on 01363 773191 or email email@example.com for more information about how we can assist you with your self-assessment tax return.