Self-Assessment tax return filing can be a stressful period of the year. Now that you are reading this, it is important for you to know that you must take taxes seriously. In any case or if at any point you feel that you might be going wrong or have missed out on something, it always helps to seek advice from an expert and avoid anomalies later on.
Self-assessment tax return deadline – Important dates
There are couple of important dates you need to note when it comes to tax return deadline in the UK.
If you are filing paper tax return then the deadline for it is 31 October. In case you miss this, then you can file the returns online whose last date is 30 December the same year. The most important deadline, however, is 31 January of the next year.
In case you fail to file the tax return or to pay the tax you owe on time then you will have to pay extra fine and interest charges.
Determining if you have to pay any tax returns
Generally, the tax amount is deducted from the pay package which is PAYE. However, there are millions of self-employed people who need to file a self-assessment tax return. If you fall under following cases, then you are obliged to complete the process:
- You own a business in partnership
- You are self-employed
- You hold the position of a director at a limited company
- You receive an annual pension of £100,000 or more
- You have an earning of £10,000 or more as pre-tax investment
- You are a recognised name at the “Lyod’s” of London insurance market
- You have earning from a land, property, overseas or an investment which is not taxed
- Your annual capital gains exceed the exempt amount of £11,100
- You receive pension (reduced age-related grant) and are over 65
The HMRC will send the relevant forms to your registered address. You will have to return them after completing the paperwork either via post or submit them online.
For filing the paper tax returns, you must know that there is a six page self-assessment tax return form, also called SA100, where you need to provide your income details from different sources. The HMRC will calculate your tax liability.
For online tax returns, you have an extra benefit of extended deadline of three months and ease. Your tax will be calculated automatically as you fill in the return. The sections that do not apply to you will be removed as you move on through the process. Upon completion of the process, you get an instant confirmation. If HMRC owes you money then the online process is much faster and you will definitely get paid more rapidly. For first timers, you will need to make a registration in advance.
Can you make any edits after submission?
When we talk about a year, it is possible you might need to make some edits during some stage. So, you are allowed to update within 12 months of the original deadline. For any changes after that, you can write a letter to the HMRC asking for the same. In case of filing an online tax returns it simple. You just log into your HMRC account and make the edits. For paper tax returns, you will need a new tax return form.
The Dreadful! Late Fee
If the window of your late tax return filing is in between a day and three months then you will most likely be fined £100. More than three months late will land you greater penalty depending upon the time frame. You can check and find the estimate amount online using a tool on HMRC website. The fines will keep piling up due to increased delay. You will be fined even if you do not owe any tax.
The HMRC will issue you a penalty letter and may be an estimated tax bill (“determination”). You can appeal if you think that you have been wrongly fined and have a “reasonable excuse”, as classified by the HMRC.
The deadline to file the self-assessment tax return for the tax year 6 April 2017 to 5 April 2018 is on 31 January 2019 till midnight. If you are still stuck somewhere midway in the process of tax return filing or need a hand or are in a state of panic, then know that professional help is readily available. Just get in touch with us and we will help you sail smoothly through the entire process on time. Write to us at email@example.com