Have you recently become self-employed? If you earned untaxed income of over £1,000 during the 2022-23 financial year, you need to register for self-assessment by this Thursday, October 5th, to stay in compliance with HMRC regulations.
To ease your concerns and provide clarity on the process, we have prepared this blog post to answer your frequently asked questions.
What if I miss the registration deadline?
While there's no immediate penalty for missing the October 5th deadline, delays can lead to fines if you later submit your tax return or pay your tax bill late.
How do I register?
You can sign up for self-assessment online here: Register for Self Assessment - GOV.UK (www.gov.uk)
What are the deadlines for submitting my tax return and paying any tax owed?
For paper returns, the deadline is October 31st.
If you're filing online, mark January 31st on your calendar. It's imperative to pay your tax bill by this date, including the first payment on account if you're self-employed.
Can I claim business expenses?
Absolutely! You have the opportunity to reduce your tax liability by claiming certain business expenses, including office stationery, business trips, and even the cost of running your business premises. If your workplace is your home, you may be eligible to claim for some of your bills as well.
What are the penalties for missing the tax return submission deadline?
Failing to submit your tax return online by the deadline may result in a £100 fine if your tax return is up to 3 months late. This penalty increases if it’s delayed further.
What are the penalties for missing the tax payment deadline?
Missing the payment deadline incurs daily interest charges, which is currently set at base rate plus 2.5%. Further penalties may apply if you continue to miss the deadline by several months.
What should I do if I'm going to miss the payment deadline?
In such cases, it's essential to reach out to HMRC promptly. They may be able to establish a time-to-pay agreement, allowing you to spread your tax bill into manageable instalments over an agreed period.
Should you need further assistance or have questions, don't hesitate to contact us.