Sumit Agarwal
07 Aug 2024
Self assessment
The self assessment tax return is an essential part of managing your finances if you’re self employed or have other income that isn’t taxed at source. Understanding the deadlines associated with this process is important to avoid penalties and ensure compliance with HM Revenue and Customs (HMRC) regulations.
Every year, taxpayers must submit their self assessment tax returns by specific deadlines, typically January 31st for online submissions. Missing this deadline can lead to fines and interest on any unpaid tax, which can quickly add up.
If you find yourself unsure about your obligations or have missed the deadline, it’s important to know that there are steps you can take to rectify the situation. This blog will guide you through the key dates, what happens if you miss the deadline and how to file your return, even if you’re late. By staying informed and proactive, you can navigate the self assessment process with confidence and avoid unnecessary stress.
For most individuals and businesses in the UK, the deadline for submitting your self assessment tax return is 31st January each year. This date applies to online submissions. If you prefer to file a paper tax return, the deadline is earlier, on 31st October of the previous year.
For example, if you are filing for the tax year ending on 5th April 2024, your online submission must be completed by 31st January 2025, while a paper return must be submitted by 31st October 2024.
It's important to note that if you miss these deadlines, you may face penalties and interest on any unpaid tax. To avoid last-minute stress, it’s advisable to start gathering your financial information early and plan your submission well in advance of these key dates.
In the UK, certain individuals and businesses are required to complete this process. Primarily, anyone who earns income that isn't taxed at source must file a self assessment.
Self employed individuals and sole traders
Partners in a business partnership
Company directors
Landlords with rental income
Those with income from savings, investments, or dividends above certain thresholds
High earners (over £100,000 per year)
People claiming certain income tax reliefs
Ministers of religion
Trustees or representatives of someone who has died
Those who have income from abroad
Employees claiming expenses over £2,500 per year
Child Benefit recipients (or their partners) with income over £50,000
In the UK, certain individuals and businesses are required to complete this process. Primarily, anyone who earns income that isn't taxed at source must file a self assessment.
If you miss the self assessment deadline, several consequences can arise. Here’s what you need to know:
Immediate penalties: You may face an automatic penalty of £100 for late submission. This applies even if you have no tax to pay or if you file your return just a day late.
Additional charges: If your tax return is more than three months late, further penalties can accumulate. After three months, you may incur an additional £10 for each day your return is late, up to a maximum of £900.
Interest on unpaid tax: If you owe tax and miss the deadline, you will also be charged interest on the amount due. This interest starts accumulating from the original payment deadline.
Increased scrutiny: Late submissions can trigger a closer examination of your tax affairs by HMRC, leading to potential audits or inquiries.
Difficulty accessing benefits: If you are self employed or claim certain benefits, a late tax return can affect your eligibility for financial support.
Stress and confusion: Missing the deadline can create unnecessary stress and confusion as you scramble to file your return and deal with potential penalties.
Potential for criminal charges: In severe cases of tax evasion or fraud, failing to submit your tax return on time could lead to criminal charges.
Taking action as soon as you realise you’ve missed the deadline can help mitigate some of these consequences.
What happens if you file your self assessment tax return late? HMRC imposes penalties that increase over time. Here's a breakdown of the penalties you might face:
Immediate £100 fine: As soon as you miss the deadline, you'll receive an automatic £100 penalty, even if you don't owe any tax.
Daily penalties after 3 months: If your return is more than 3 months late, you'll be charged £10 per day for up to 90 days. This can add up to £900.
6 month penalty: After 6 months, you'll face an additional penalty of either £300 or 5% of the tax due, whichever is higher.
12 month penalty: If your return is 12 months late, you'll be charged another £300 or 5% of the tax due, whichever is higher. In serious cases, this penalty could be up to 100% of the tax due.
Interest on late payments: On top of these penalties, HMRC will charge interest on any unpaid tax from the date it was due.
It's important to note that these penalties apply even if you don't owe any tax. They're for late filing, not just late payment. If you're struggling to pay, it's better to file on time and contact HMRC to arrange a payment plan. This way, you'll avoid the late filing penalties and only deal with potential late payment charges.
Filing your self assessment tax return doesn't have to be a daunting task. Here's a step-by-step guide to help you through the process:
If this is your first time filing, you'll need to register with HMRC. Do this as soon as possible, as it can take up to 10 working days to complete the registration process. You'll receive a Unique Taxpayer Reference (UTR) number, which you'll need to file your return.
Before you start, collect all necessary documents, including:
P60 form (if employed)
P45 form (if you've changed jobs)
Bank statements
Invoices and receipts for business expenses
Details of any income from investments or property
You can file your return:
Online through the HMRC website
By post using paper forms
Using approved commercial software
Online filing is generally easier and gives you more time to submit your return.
If filing online, log in to your HMRC account using your Government Gateway ID and password.
Enter your details, including your name, address and National Insurance number.
Report all sources of income, including:
Employment income
Self employment income
Rental income
Investment income
Any other income sources
If you're self employed or have rental income, you can claim allowable expenses to reduce your tax bill. Be sure to only claim expenses that are wholly and exclusively for business purposes.
Don't forget to claim any tax reliefs or allowances you're entitled to, such as pension contributions or charitable donations.
The online system will calculate your tax automatically. If using paper forms, you'll need to do this manually.
Once you've filled in all the necessary information, review your return carefully. When you're sure everything is correct, submit your return.
If you owe tax, you'll need to pay by the payment deadline (usually January 31st). You can pay online, by bank transfer, or by check.
After filing, keep all your documents and a copy of your tax return for at least five years. HMRC may ask to see these if they conduct an investigation.
By following these steps, you can file your self assessment tax return with confidence. If you need clarification on any part of the process, feel free to get advice from HMRC or a qualified tax professional. They can provide guidance tailored to your specific situation and help ensure you're meeting all your tax obligations correctly.
Meeting the self assessment deadline can be straightforward with a little planning and organisation. Here are some practical tips to help you stay on track:
Mark your calendar: Set reminders for key dates related to your self assessment. The deadline for online submissions is usually January 31st, while paper returns are due by October 31st. Mark these dates on your calendar and set reminders a few weeks in advance.
Organise your documents early: Gather all necessary documents well before the deadline. This includes income statements, expense receipts and any other relevant financial records. Keeping everything organised will save you time and reduce stress as the deadline approaches.
Use accounting software: Consider using accounting software or apps that can simplify the process of tracking income and expenses. Many tools are designed specifically for self assessment and can help you prepare your return efficiently.
Start early: Begin your tax return as soon as you have all your documents. This gives you ample time to address any questions or issues that may arise, reducing the likelihood of last-minute panic.
Double-check Your work: Before submitting your return, review all the information carefully. Mistakes can lead to delays and penalties, so taking the time to double-check can save you trouble later.
By following these tips, you can make the self assessment process smoother and more manageable.
First, don't panic. HMRC understands that sometimes people face financial difficulties. The most important step is to contact HMRC as soon as possible. Don't ignore the problem, as this will only make things worse.
When you reach out to HMRC, explain your situation honestly. They may offer you a Time to Pay arrangement, which allows you to spread your tax payments over a longer period. This can make your bill more manageable.
Before contacting HMRC, try to work out how much you can realistically afford to pay each month. This will help when discussing payment options. Be prepared to provide details about your income, expenses and any savings or assets you have.
If you're struggling to pay due to a temporary cash flow issue, consider other options to raise the funds. Could you use savings, sell assets, or borrow money from family or friends? These options might be preferable to facing penalties from HMRC.
For those facing more severe financial difficulties, seek advice from a debt charity or financial advisor. They can provide free, impartial guidance on managing your debts, including tax bills.
If you're self employed and anticipating future payment difficulties, start setting aside money for taxes regularly. This can help prevent similar issues in the future.
Lastly, always file your tax return on time, even if you can't pay the bill. This avoids additional penalties for late filing. By taking action and communicating with HMRC, you can find a solution that works for both you and the tax authorities.
If you have questions about the self assessment deadline or are looking for assistance with your tax return, we at dns accountants are here to help. Our team of experts specialises in self assessment services, ensuring that you meet all deadlines and comply with tax regulations.
Whether you need guidance on filing your return, understanding your tax obligations, or managing payments, we provide personalised support tailored to your needs. Our goal is to make the process as easy and stress-free as possible.
To get started, contact us today at 033 0088 3616 or email us at contact@dnsaccountants.co.uk. You can also book a free consultation. Let us take the worry out of your self assessment, so you can focus on what matters most to you.
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