Have you filed your Self-Assessment?
Probably you are tired of hearing “Have you filed your Self-Assessment” on radio, TV, Newspapers and on the Tube!. Yes, the deadline for filing your Self-Assessment for tax year 2018/19 is 31st of January 2020.
Who should file a Self-Assessment?
Anyone who has received untaxed income from any source will have to file a self-assessment and pay the relevant taxes. Examples below:
- Self Employed Sole trader
- Anyone receiving Property Income
- Anyone receiving Dividend income
- Anyone receiving Bank interest
- Anyone have any other investment income
- Anyone earning over £100,000 salaries
- Anyone earning over £50,000 and receiving Child Benefit
- Anyone who has disposed a chargeable asset (Capital Gains Tax payable)
- And the list goes on
Self Assessment is not always paying more taxes to HMRC. There are instances where you will actually get a refund from HMRC if you have overpaid Taxes:
- If you have suffered CIS deductions (Your main contractor has deducted CIS from your pay)
- If you have two jobs and paid more taxes due to a wrong tax code
- If you have made a trade loss which could have been set off against your other income
- If you have made an EIS or SEIS investment.
- If you have incurred employment-related expenses which are not reimbursed by your employer etc
What will happen if I don’t file a Self-Assessment?
- If you don’t file your Self Assessment on time ( for 2018/19 returns - paper returns by 31st of October 2019 and online returns by 31.01.2020), you will get a penalty of £100.
- If the return is not filed after 3 months of the deadline, HMRC will impose a penalty of £10 per day for the next three month up to a maximum of £900.00
- If you are late by 6 months, you will pay an additional 5% of the Tax due or £300, whichever is greater.
- If you are late by 12 months, you will pay further 5% of the Tax due or £300, whichever is greater.
What if I don’t pay on time?
- If you have not paid the tax due within 30 days of the payment due date you will be charged 5% of the taxes due
- If you have not paid the tax within 6 months from the payment deadline, a further 5% penalty will be applicable
- And if you are 12 months late, another 5% will be charged on the tax due.
** Please note the late filing penalties and late payment penalties are independent to each other and you may be liable to pay both the penalties.
** If you are missing information, you can always make estimates and notify in the tax return that you have made estimates.
** You can also amend your tax return online within 12 months of your online filing deadline.
If you would like to discuss your self Assessment with us, please contact us and an expert in our team will be happy to assist you.