As we approach the final months of 2018, self-assessment season relating to 2017/18 is getting ever closer.
For paper returns, the deadline is imminent – on 31 October 2018 – but with only around 7% of people now using this method, it’s likely you’ll be filing yours online instead.
If that’s the case, you’ll have some more time before returns are due at midnight on 31 January 2019.
This can prove an awkward deadline for many people, with Christmas commitments and spending to manage the month before, and New Year planning to think about.
So, to save you any tax worries over the holiday season, we can help you get your self-assessment tax return prepared as soon as possible.
Do you need to file a return?
For self-employed people, self-assessment tax returns are used to calculate the tax you owe for the year. In comparison, employees have this is done through PAYE.
However, there are also reasons you might need to file a return if you’re employed, such as if you have additional untaxed income of more than £2,500.
This could be from renting property, or earning tips or commission.
You might also be required to file self-assessment if you earn over £10,000 from savings, investments or dividends.
See the guidelines from HMRC for a full list of who needs to file a return.
How do you send one?
Before you begin, make sure you have your paperwork together. If you’re self-employed, this could include your bank statements, sales invoices and receipts.
Most people can send their return using HMRC’s self-assessment online service, which lets you complete the process step by step, saving your progress along the way.
What happens if you miss the deadline?
You could face a penalty of £100 if your tax return is up to three months late. This could be higher if your return is later, or if you pay your tax bill late.
Can you correct mistakes?
Don’t panic if you realise you need to change your tax return after you’ve filed it.
You can amend your tax return within the first year of the 31 January deadline. Depending on the change you made, you may then need to pay more tax or request a refund.
All the same, it’s better to get it right the first time and avoid the additional stress.
Contact us
Get in touch if you have any questions or problems completing your self-assessment tax return.
We can handle your tax return from start to finish, as well as dealing with HMRC on your behalf if necessary.
Call us at 01628 631 056 or email tracya@knightandcompany.co.uk to talk about our self-assessment service.