You also need to submit a Self-Assessment if you are a director and receive dividends or have a significant income from saving, investments, or renting a property.
What are the deadlines for Self-Assessment Tax Return and important dates
If you are self-employed, your financial year will run from
6th April - to 5 April the following year. For example, from 6 April 2022 - 5 April 2023.
If you've become self-employed, you must
register with HMRC by the 5 October
following the financial year. So, for example, if you started your business in May 2022, you have till 5 October 2023 to register.
You will need to submit and pay your tax by 31 January. If you started your business in May 2022, you would have to submit and pay your tax return in January 2023
You can still submit your tax return on paper, but the deadline is 31 October.
If your tax bill's more than £3000, you must pay the 2nd Payment on Account by 31 July
the following year.
Under MTD for ITSA, you must submit your tax return quarterly using cloud-based accounting software approved by HRMC.
Registration for Self-Assessment
As mentioned above, you must register with HMRC for Self-Assessment by 5 October following the financial year.
If you need further information, follow the link below:
When you create your account, the website will give you a Government Gateway user ID, and you will need to set a password to get back in. HRMC will send you your UTR (Unique Taxpayer Reference) and activation code by post within ten days. When you get all your credentials, you can submit your tax return.
How to Fill in Your Self Assessment
You will need to gather all your receipts and invoice that are whole and exclusively related to your business and details of any income from your company.
The easiest way to record your income and expenses is by using accounting software and keeping your records up to date. It saves you time and money because you won't miss anything.
Keeping your records tidy is also essential because HRMC may want to check your tax return. You are required by law to keep your business records for six years.
Follow these steps to fill in your Self Assessment:
1. Check all your personal details are up to date and correct.
2. Choose which section applies to you.
Are you declaring income from renting a property, or are you self-employed?
This section caters to declaring all kinds of income. Therefore you need to choose what section applies to you. Deciding what income you want to declare will prepopulate a relevant form for you to fill in.
3. Report your income and expenses
This section will ask about your turnover, which is another word for income. It's asking you what the total of your sales made by your business was.
If you have other income as well as self-employment, you must enter them into the relevant section. So, for example, if you rent a property, you must fill in the revenue in the area for renting a property rather than adding it all up and declaring it in one section.
4. Fill in the section for your business-related expenses
As mentioned above, not all costs are allowable. Your expenses must be wholly and exclusively related to your business. If you need help with what costs you can claim for working from home or what are the most common disallowable expenses, you can read our guide.
5. Check your tax return
You can check your tax return at the end, so don't worry if you click next. You can always go back and check everything over. Then, if you notice any incorrect information, you can go back and redo the section.
You can change your tax return 72 hours (3 days) after you've filed it, for example, because you made a mistake. You'll need to make your changes by:
31 January 2023 for the 2020 to 2021 tax year
If you miss the deadline or need to change your return for any other tax year, you must write to HMRC.
Pay your tax bill.
The deadline for submitting and paying your tax bill is 31st January, but you can pay your bill anytime before that.
When you submit your Self-Assessment, go back into your account and ensure it has gone through, especially if you are close to the deadline. The HMRC will send you a confirmation email with your reference number when it does.
When you pay your bill, make sure you leave yourself enough time to do so before the deadline, as the first fine for a late tax return is £100, and you'll have to pay more if it's later or if you pay your tax bill late.
Need help with your tax return?
If you are self-employed and need help filling in your Self-Assessment, we can help you. We can take it off your hands and do it for you, or we can offer our Power Hour service to guide you through your Self-Assessment and advise you on what you can claim as expenses. In addition, we can go through your accounts and help you fill in the Self-Assessment. If that's something you would like, follow the link below.
