Are you about to file your first tax return? Trish Doan offers some top tips as the 31st January deadline fast approaches.
You will need to complete a self-assessment tax return if:
- You are self-employed (unless this income is within the £1,000 trading allowance)
- You have property income (unless you are within the £1,000 property allowance or the income qualifies for rent-a-room relief)
- You have untaxed savings income – although you do not need to report any savings income under £1,000 (£500 if you are a higher rate taxpayer) or dividends of less than £2,000
- You are a partner in a business
- You have taxable chargeable gains for the year
- Register for self-assessment:
If you are filing a tax return for the first time, you must be registered for self-assessment. There are different ways to register depending on whether you are self-employed, registering a partnership or not self-employed.
Self-employed: register for self-assessment through your business tax account if you have not filed a tax return before. If you have filed one before, but did not file one last year, you must re-register online using form CWF1.
Partnership: register using form SA400, either by using HMRC’s online services or by posting the filled in form to HMRC.
Not self-employed: register for self-assessment using form SA1 either online or by posting a paper version to HMRC.
- Getting your UTR:
Once you have registered for self-assessment, you will be issued a Unique Tax Reference (UTR). If you want to submit your tax return online, you will need to set up a Government Gateway account.
- Information to complete tax return:
Your tax return must contain details of all of that tax year’s taxable income and gains. For example, this can include:
- Details of property income and expenses
- Employment and pension income
- Details of self-employed income and expenses
- Pension contributions made
- Savings income e.g., bank interest and dividend income
- Detail of any chargeable gains made in the year
- Deadlines:
The deadlines for submitting your tax return are:
Online tax returns – 31 January following the end of the tax year
Paper tax returns – 31 October following the end of the tax year
If you want HMRC to automatically collect the tax you owe from wages and pension, then the deadline is 30 December following the end of the tax year.
- Penalties:
Late filing penalties:
- £100 applied immediately if the tax return if filed after deadline
- 3 months late – £10 per day for a maximum of 90 days
- 6 months late – the higher of £300 or 5% of the tax due
- 12 months late – further £300 or 5% of the tax due (whichever is higher)
Late payment penalties:
- 30 days late – 5% of tax outstanding at that date
- 6 months late – further 5% of tax outstanding at that date
- 12 months late – further 5% of tax outstanding at that date
If you are unsure whether you need to submit a self-assessment tax return, get in touch with us at Page Kirk on 0115 955 5500 or by emailing enquiries@pagekirk.co.uk