HMRC’s 31st of January Self-Assessment deadline is fast approaching and many continue to leave this important financial experience to the last minute – some even go beyond the deadline in endeavoring to complete their assessment on-time resulting in penalty charges galore.
Furthermore, by leaving your tax return to the very last minute you could make serious unintended errors by not having enough time to scrutinise your financial affairs correctly. These errors could lead to investigations and further penalty charges levied by HMRC.
Prestige Business Management can help you submit your Self-Assessment, if you are unsure, have questions about the process or need advice in general, we can help make the Self-Assessment process as stress-free as possible.
Self-Assessment – When Will You Need To Do It?
You only need to complete a Self-Assessment return for 2018-2019, by January 31st, 2020, if you have been asked by HMRC to complete one or if you are self-employed. Those asked by HMRC usually have investment income or rental income that is untaxed. But it is always worthwhile to check for yourself – sometimes HMRC won’t have the latest information about your circumstances. However, here are the basics. You must complete a Self-Assessment tax return for April 2018 to April 2019, to be paid 31st of January 2020 if you:
- Have earnings of over £100,000 per year
- Made a “Capital Gain”, which one would do if they sold a property or sold shares
- Are a partner in a business partnership
- Earn more than £1,000 from supplemental income which is outside of your waged employment
- Are a Self-Employed “Sole Trader” Earning More Than £1,000
However, you don’t usually have to send a Self-Assessment Tax Return to HMRC if your income is derived from wages or pension income. If you receive anything additional you may need to declare, for example:
- Income from rental
- Foreign income
- Hobbyist Income if greater than £1,000
- Income from Savings and Dividends
- Commission and Tips
On occasion, for example, if you are a recipient of a child benefit with an income of over £50,000 you may have to submit a Self-Assessment Tax Return as you could be liable for the High-Income Child Benefit Charge.
What Happens On And After This Date – The Low Down
As any British TV fan can attest, HMRC likes to make people aware of the Self-Assessment Tax Return deadline – it’s the 31st of January just in case you weren’t sure! This tax return covers the period April 2018 to April 2019 with the return due January 31st, 2020. At Prestige Business Management we recommend that you get financial advice as soon as possible.
You should be aware that if you want HMRC to collect your tax automatically from any pensionable or wage-based income, the deadline is 30th of December to submit your return.
Remember if you miss any of these deadlines, a penalty is automatically issued. The penalty rate begins at £100 for tax returns that are up to three months late and this increases as the months roll on. Interest and other charges can be levied during this period.
Why not call Prestige Business Management today on 0203 773 2927? We can help unburden you of self-assessment tax return pains and pressures. Our team can help make the process easier and more rewarding for you.