What are the dates that all self-employed need to know in the UK?
Being self-employed in the UK offers many benefits such as flexibility and independence in work. However, it also comes with certain responsibilities, including meeting various deadlines and paying the relevant fees.
Registering for Self-Assessment
The first deadline that you need to be aware of is 5th of October. You must tell HMRC if you need to complete a tax return and have not sent one before by 5 of October of the following tax year. To find out whether you need to file a tax return use the following HMRC tool:
https://www.gov.uk/check-if-you-need-tax-return
For example, if you had any untaxed income in the tax year between 6 April 2023 and 5 April 2024 you will need to register as a self-employed by 5th October 2024.
You can register for self-assessment by following the link below:
https://www.gov.uk/register-for-self-assessment
When you register as self-employed HMRC will send you a Unique Taxpayer Reference number (UTR number) through the post. Make sure to keep a record of it, as you will need this when submitting your tax return.
If you need help with the registration, please do not hesitate to reach out and we will be happy to help you.
Self Assessment (tax return) deadlines
Submitting your tax return is a crucial obligation if you are self-employed in the UK. The deadline for submitting a paper tax return is 31st October in the following tax year, while if you submit it online, the deadline extends to 31st January.
It is essential to meet these deadlines to avoid late filing fees.
If you fail to submit your tax return by the deadline, you will incur a late filing fee.
The initial late filing fee is £100, regardless of whether you owe any tax.
If you still haven't filed your return three months after the deadline, additional penalties of £10 per day apply, up to a maximum of £900.
Payments on account
Self-employed individuals in the UK with a higher tax liability than a £1000 must make advance payments to HM Revenue and Customs (HMRC) each year for the following tax year. These payments are called “payment on account”.
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.
Failing to make these payments on time will result in late payment fees.
Top tips to prevent incurring unnecessary fees
Maintain an organized record of income and expenses throughout the year, making it easier to compile your tax return
Use accounting software to streamline financial management and reduce errors
Keep receipts and invoices in a secure and accessible manner.
Ensure you stay aware of upcoming deadlines and payments by setting reminders on your calendar or utilizing digital solutions
HMRC also provides notifications about important dates.
Seek Professional Assistance – Tax Wired is happy to assist you and remind you of any upcoming deadline. We can also give you a piece of mind when it comes to your tax return as we make sure that all your expenses and incomes are correctly reported.
Meeting deadlines and paying the necessary fees is essential for self-employed individuals in the UK. Failure to do so can result in late filing or payment fees, which can quickly accumulate. By staying organized, setting reminders, and seeking professional assistance, you can ensure that you fulfill your obligations promptly, avoiding unnecessary fees and maintaining a good relationship with HMRC.
