Self-Assessment tax return deadline approaching
If you complete a self-assessment tax return online, the deadline of 31 January 2023 is fast approaching. With only three months left to get your tax return filed with HMRC, taxpayers are encouraged to file their returns as early as possible to ensure that penalties are not incurred because the deadline is missed.
What is a Self-Assessment Tax Return?
A self-assessment tax return is for taxpayers who are self-employed or have other sources of untaxed income which must be declared to HM Revenue and Customs (HMRC). This includes income from renting out property, foreign earnings, and certain types of savings and investments.
Who Needs to Submit a Self-Assessment Tax Return?
If you’re employed and pay Income Tax through the PAYE system, you generally don’t need to complete a self-assessment tax return. However, there are some exceptions where you might need to submit a return, such as if you’re:
- Self-employed
- A company director
- Receive child benefit and your income is over £50,000
- Receive more than £10,000 from savings and investments
- Have untaxed income, such as from renting out property
At a glance tax return checklist
1. Get your documents in order
The first step in preparing for your self-assessment tax return is to get your documents in order. You will need to gather all of the relevant documents, including your P60, P11D, and any other relevant documentation.
2. Make sure you are registered
If you have not yet registered for self-assessment, you will need to do so before you can file your tax return. You can register for self-assessment here.
3. Calculate your tax liability
Determine your taxable income, which is the total amount of money you earned during the year minus any allowable expenses.
4. Claim All Relevant Deductions
Once you have determined your tax liability, check if you are eligible for any deductions – an accountant can help you understand what is relevant for you. Some common deductions include those for charitable donations or working from home.
5. File your return on time
The deadline for filing your self-assessment tax return is 31st January. If you do not file your return on time, you may be subject to late filing penalties.
Penalties
Failing to submit a tax return by the deadline of 31 January will incur a penalty. If your return is up to three months late, you’ll have to pay £100 penalty. This will increase if it’s any later.
HMRC has advice on paying your tax bill if you have any concerns.
Working with a tax expert for personal tax returns
If you would like the support of an accountancy firm to help you complete your self-assessment tax return, then you can call our accounting team at McKenzies on 01883 717077.
Once we’ve had an initial chat with you to learn more about your requirements, we would need all paperwork to be with us by 18 January 2023 at the very latest, in order for us to guarantee that a tax return is filed by 31 January 2023.