With almost half of the UK’s self-employed workforce yet to complete their tax returns, experts are warning Brits to submit their online self-assessment before January 31st to avoid a £100 late filing penalty. Last February, HMRC revealed that an estimated 1.1 million customers missed the deadline for filing their tax returns for the 2023 to 2024 tax year.
If you fail to meet the deadline to submit your tax return, you will receive a late-filing penalty of £100 initially. If you still haven’t paid your tax return 3 months after the deadline, then you may be fined more. To help, the experts at money.co.uk business bank accounts analysed Google search data to reveal and answer the top questions about self-assessment.
You must register with HMRC for self-assessment if you haven’t already. This is necessary if you are self-employed or make money from other sources like renting a property. Gather all the required documents before you start filling in your tax return. This includes your P60 or P45 if you’re employed, details of any self-employed income, bank statements for interest on savings, records of any rental income, and information on dividends or capital gains, if applicable.
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You can complete your tax return online through the HMRC website. The system will guide you through various sections that apply to your situation. Be accurate and honest with the information you provide. If you’re self-employed, you must provide income and expenses details. The online system will calculate the tax you owe based on your provided information. Ensure you review this carefully. Once you have completed the tax return and are happy that all the information is correct, you can submit it online to HMRC.
Once you have completed your self-assessment tax return, HMRC will send you a tax bill (also known as a ‘Self Assessment Statement’). This bill can be accessed through your HMRC online account. There are several ways to pay your self-assessment tax bill.
After you’ve paid, keep a record of the payment. HMRC may need proof of payment in case of any discrepancies. If you’re self-employed, calculate your Class 2 and Class 4 National Insurance contributions based on your profits.
See if you qualify for tax reliefs or credits that reduce your tax bill. Add up all the tax due from different sources and deduct any tax already paid (like through PAYE). If your tax bill is above a certain threshold, you might need to make ‘payments on account’ towards next year’s tax bill.
Calculating your tax can be complicated, so you might want to use tax software or speak to a tax professional to ensure everything is correct.