What is a Self Assessment?
Self assessment is HMRC’s way of collecting income tax from individuals. When you have an employed position, the tax is deducted before you are paid but if you are self employed, you need to tell HMRC what you have earned – this is done via your Self Assessment. The tax period runs from 6th April to 5th April each year.
What format is a Self Assessment and what are the timeframes?
It can be in paper form but it’s quicker and easier online, the timeframes are different for both. Paper submissions need to be in by 31st October and the online submission deadline is 31st January.
When do I need to pay the tax amount?
The payment for the tax amount owed must be paid by 31st January.
What if I don’t submit my Self Assessment?
HMRC will fine you if you don’t submit on time. If you are having issues, you should contact them straight away and explain. They’re usually very helpful if you speak to them in advance of the deadline.
How do I get started?
To start submitting your Self Assessment, you need to register with HMRC. They will send you a letter with your Unique Taxpayer Reference (UTR). HMRC will then send another letter with an activation code. The code will expire so ensure to act upon it as soon as you receive it
Once you’ve registered, make sure you have all your finance information to hand and know what you earned and spent. Then make a cup of coffee, take your time and go through each screen. There’s always a chance to amend so don’t be afraid to get something wrong, you can review everything before you submit.
For all information about Self Assessments, always refer to the Government site here.