Three weeks until self-assessment deadline

HM Revenue and Customs (HMRC) has warned there is less than a month to go to complete and submit online self-assessment tax returns for the 2017/18 financial year.

Some 5.5 million UK taxpayers were yet to file their self-assessment returns at the turn of the New Year and HMRC is keen to raise awareness of the 31st January deadline to help individuals avoid unnecessary late filing penalties.

Angela MacDonald, Director General for Customer Services, HMRC, said: “The self-assessment deadline on 31st January is fast approaching but there is still time for customers to file their tax returns online and on time to avoid any unnecessary penalties.”

How do I know if I need to complete a self-assessment tax return?

UK taxpayers may be required to file a self-assessment tax return with HMRC in the following circumstances:

• Your household is in receipt of Child Benefit and you had an annual income of more than £50,000 in 2017/18
• You have untaxed income such as rental income, tips and commission, savings, investments, dividends or foreign income
• You are self-employed as a sole trader and earned over £1,000
• You are a partner in a partnership
• You are an employee claiming expenses worth over £2,500
• You have an annual income over £100,000

Please note that this list is not exhaustive. Please seek professional advice if you are unsure whether you are obliged to file a tax return or would benefit from filing a voluntary tax return.

What are the penalties for late self-assessment tax returns?

• Initial £100 fixed penalty for missing the 31st January deadline – even if there is no tax to pay or the tax owed is paid on time.
• Additional daily penalties of £10, up to a maximum of £900 for tax returns later than three months.
• Additional penalty of 5% of the tax owed or £300, whichever is greater, for tax returns later than six months.
• Additional penalty of 5% of the tax owed or £300, whichever is greater, for tax returns later than 12 months.

If you have only just discovered that you need to file a self-assessment tax return for the 2017/18 financial year, time is of the essence.

Your TaxAssist Accountant can work with you to calculate your tax liabilities, complete your tax return online and submit it using HMRC-approved software. They will even liaise with you on the amounts to be paid and their respective due dates.

This comprehensive service is available for a fixed, competitive price, giving you complete peace of mind. To arrange a free initial consultation on self-assessment ahead of the 31st January 2019 deadline with your local TaxAssist Accountant call 01224 637100 or drop us a line using our online enquiry form.

Last updated: 10th January 2019