Filing your self-assessment tax return is essential for every self-employed individual, sole trader, or if you meet some other criteria (e.g. earn £100,000 or more, receive income from abroad, etc.). Understanding the deadlines and submission timelines is important to avoid penalties or unnecessary stress. We’ll guide you through the process and provide insights into when you should submit your 2022/23 self-assessment tax return.
The tax year runs from April 6th to April 5th of the following year. The relevant 2022/23 tax year dates are April 6th, 2022, to April 5th, 2023.
Registering for Self-Assessment and filing deadlines
You should register for Self Assessment by 5th October 2023 if you need to send a tax return for 2022/23 and haven’t sent one for the previous year. You can visit the HMRC website or contact a qualified accountant to register.
The deadlines for your self-assessment tax return for the 2022/23 tax year are as follows:
- Paper tax return - if you use a paper tax return, you must submit your Self Assessment tax return by Midnight, 31st October 2023. However, it's important to note that HM Revenue and Customs (HMRC) encourages online filing.
- Online tax return - if you submit online, you must submit your tax return by Midnight, 31st January 2024.
Collecting the Required Information
Before completing your self-assessment tax return, you must gather several key pieces of information. These include:
- Income Information: Ensure you have accurate records of all your income sources, including invoices, bank statements, and receipts.
- Expenses Documentation: Keep track of your business expenses, such as receipts for office supplies, travel expenses, and equipment purchases. This information will help you claim allowable deductions and reduce your taxable income.
- Updating Accounting Software: If you use accounting software like FreeAgent, update it with all your financial transactions and ensure that your data is accurate and current.
- P60: If you are employed and receive income through PAYE, you will need your P60 form, which provides details of your salary and taxes paid during the tax year.
Understanding Payments on Account
When completing your self-assessment tax return, it's essential to consider "payments on account." This system allows you to make advance payments toward your tax bill for the following year. Here's what you need to know:
- First Payment on Account: If your tax bill exceeds £1,000, you must make an initial payment on account by January 31st, 2023, along with any outstanding tax from the previous tax year.
- Second Payment on Account: The second payment is due by July 31st, 2023, and represents another advance payment toward your 2022/23 tax year tax bill.
Finalising Your Tax Return and Making Payments
Once you have gathered all the necessary information and completed your self-assessment tax return, reviewing it carefully for accuracy is essential. Double-check your income, expenses, and any claimed deductions. After finalising your return, your accountant can help you calculate your tax liability.
Payments for the 2022/23 tax year, including any outstanding tax from the previous tax year and payments on account, are due by January 31st, 2024.
Penalties for Late Filing
Please complete the deadlines for filing your self-assessment tax return to avoid the penalties HMRC imposes. The penalties vary depending on the delay:
From the 1st February to 30th April (over 1 day late) - £100 fine
From the 1st May to 31st July (over 3 months late) - £10 a day fine up to a maximum of £900 (90 days) for every day it is late
From the 1st August to 31st January (over 6 months late) - £300 fine or 5% of the tax owing, which ever is greater
From the 1st February of the following year (over 12 months late) - another £300 fine or 5% of the tax owing, which ever is greater.
Promptly filing your self-assessment tax return is crucial to avoid penalties and unnecessary stress. Understanding the deadlines, collecting the necessary information, and staying organised throughout the process will help ensure a smooth and timely submission. You can fulfil your tax obligations efficiently by adhering to deadlines and providing accurate information.
A qualified accountant or tax professional like we have at goforma.com can provide valuable guidance, ensure compliance with tax regulations, and help optimise your tax position.
Remember, the information provided in this blog post is based on the current tax regulations for the 2022/23 tax year. Tax laws can change, so staying updated and consulting official sources or seeking professional advice when necessary is essential.
Submitting your self-assessment tax return on time ensures compliance with HMRC requirements and allows you to plan your finances effectively, avoid penalties, and maintain peace of mind. Take control of your tax obligations and make a proactive approach to meet the deadlines associated with your self-assessment tax return.
If you want further information or professional advice, please contact us at email@example.com.