If you’re self-employed as a business owner you will need to file your self-assessment each year to let HMRC know what you’ve earned over that tax year. As well as letting HMRC know about what you’ve earned, you’ll also need to let them know where these earnings have come from. So before we look at the consequences of filing your self-assessment late. When does it need to be filed by? Well HMRC requires that your self-assessment is filed no later than January 31st. However, this will only apply if you’re planning on filing your self-assessment online. If you’re not but rather doing it by post, the date then changes to the 31st October.
If you’re planning on submitting your self-assessment online you would need to click here. Once you have filed your self-assessment you will also want to keep these records on file for up to 6 years following submission. So before we look at the penalties for filing your self-assessment late, in a nutshell, this is what you need to file your self-assessment:-
- Your P60 form, which is a summary of your income and tax deductions
- Your P11D form, which covers expenses and benefits
- Details of other personal income and investments
- Capital gains from the sale of assets, including shares and property
- Any taxable benefits from employers or the government
- Your National Insurance (NI) number and employer reference, if you have one
Okay now to move on to the penalties of filing your self-assessment late. If you file your self-assessment up to 3 months later than 31st January or 31st October respectively you will find yourself being fined £100. This also applies if you’re up to 3 months late paying your tax bill. If this goes beyond being 3 months late you’ll then find that interest will start to accrue and the amount that you owe will start to snowball. It isn’t only the financial implications, however. Filing your self-assessment late can also lead to you not being as organised and can have a knock-on effect on being organised with the following year’s self-assessment. And so it’s beneficial from all angles to ensure that it is filed
If you have any more questions about your self-assessment and what you need to include in it to ensure that you’re ticking all the boxes and avoiding any potential penalties. Get in touch with a member of the team here at D&K Accounting and we are more than happy to talk you through the whole process and answer any questions that you might have.