The Self-Assessment Tax Return deadline is the 31st January, however if you’re yet to submit yours, don’t worry as there’s still time to gather everything you need and send off your tax return.
Here’s a few helpful tips to follow:
Gather and organise your documents
Make sure all your accounting information is in one place, this includes records of sales and income, business expenses, VAT details, PAYE documentation if you employ someone, and personal income.
It’s generally good practice to keep everything in one place, however if you can’t find everything, don’t tire yourself out trying to look for specific documents. You should be able to complete your tax return by stating your salary and dividends.
Include all mandatory information
In order to successfully complete your tax return and avoid any penalties, you’ll need to state any income you receive. This can be from a mixture of sources such as additional employment, pensions, property, and interest.
You need to be fully transparent when including your information, don’t add phrases such as ‘more information to follow’ as HMRC won’t accept your tax return and you could face a penalty.
Remember your payments
Whilst you are completing your tax return, another thing to remember is that the 31st January is the deadline to make any payments you may owe. This includes any payment on account you owe.
Don’t forget to make these payments! HMRC will penalise you for making a late payment. If you’d like to read more into deadlines and the penalties incurred, please click here.
If you’re worrying about making the payments on time, do not be afraid to ask for help! Speak to HMRC and they may be able to sort a payment plan with you. More information is available here.
Missing the deadline
We hope you can submit everything you need by the 31st January, but if you can’t, don’t worry. You can send it at a later date, but you’ll incur an automatic £100 penalty.
If you are quick, the fines won’t build up too much. For example, if your tax return is three months late, you would be charged £900. If you are twelve months late, you could face an additional penalty of 15%. It’s always a good idea to have everything prepared well before the deadline to avoid any penalties.
Reasonable excuses for missing the deadline
If you have a legitimate excuse for missing the deadline, contact HMRC. You could avoid penalties if they approve your reason. These are decided on a case by case basis. Legitimate excuses include serious illness and family bereavement, but you shouldn’t rely on excuses in gaining extra time to file your tax return.
Over to you
Of course, if you’re a client of ClearSky, your self-assessment tax return will already be underway. However if you’d like a little more information on getting prepared for the self-assessment tax return deadline, our guide can help. Keep checking our blog for more updates and handy tips.