If you’re self-employed then rather than being taxed automatically each month as you would if you were employed by someone else, you need to fill in and submit a self-assessment each year. The purpose of this is so that HMRC can ascertain how much you have earned in that particular year and tax you accordingly. Today we are going to take a look at everything you need to know about filing your self-assessment tax return should you find yourself in this position.
Do I need to file a self-assessment?
If you are self-employed, it’s more likely than not that you’ll have to fill in a self-assessment. However, if none of the below applies then you will be an exception:-
- Your income from your self-employment was more than £1,000 prior to any expenses.
- Any income from renting our property was more than £2,500.
- You’ve earned in excess of £2,500 in income that was untaxed.
- Your income from savings was more than £10,000.
- Your taxable income was £100,000+.
How to go about submitting your self-assessment
If you have now found that you need to file your self-assessment you will first need to register for self-assessment on the government website if you haven’t already. You then have the option of either submitting your self-assessment online or by post. However, depending on which of those avenues you choose the deadlines for when you will need to submit your self-assessment will vary.
Deadlines you need to be wary of
If you are new to self-employment and haven’t had to fill in a self-assessment before, you need to register by 5th October this year.
The next deadline you need to be aware of is if you are submitting your self-assessment by post/paper then this needs to be submitted by the 31st of October and no later.
If you are submitting your self-assessment online, you have until the 31st January. This is also the date where you will have to pay any tax you owe from previous tax years.
Missing any of the deadlines that we have listed above could lead to you being liable to be fined by HMRC.
Want to know more?
If you are new to the world of self-employment and want to know more about self-assessments and everything you need to do to ensure that you are compliant with the new regulations that have been put in place by HMRC. Get in touch with a member of the team here at D&K Accounting, your team of Profit First professionals.