Anyone who received income that was not covered by PAYE in the year to 5th April 2014 needs to complete a tax self assessment by 31st January. The deadline for submitting paper tax returns passed on 31st October 2015 – so you will need to do it online.
You won’t need to fill in a tax self-assessment return this year if you started to receive non-PAYE income from April 2015 – but it’s wise to be prepared for next year.
If you are late in filing your returns you will face a fine of £100 plus £90 a day up to a 90 day maximum of £900. If you are still late you will continue to accrue a fine of £300 or 5% of the total due – whichever is higher.
Can’t pay? – Don’t delay
If you can’t afford the tax bill it still pays to file a return. Late payment fines are much less than late filing charges. So don’t stick your head in the sand – as tempting as that might be.
Here’s what to do.
1. Get the paperwork together.
For the tax year 6 April 2013 – 5th April 2014 get details together of all the income you have received. This includes income from employment and self-employment, from property and other investments and interest on savings.
You should also get together a list of all your deductible expenses for that period.
2. Decide how you want to approach filing your self-assessment tax return
Self-assessment can be daunting and it’s easy to make mistakes. If this is the first time you’ve done self assessment or you don’t feel confident with financial matters or filing in forms, it will pay to let us help. It’s likely that we can save you tax because we are experts in making sure you only pay the tax you need to.
3. Make a list of your expenses.
If you work from home there are plenty of things you can claim to reduce your tax. Don’t be afraid to estimate for things. If you haven’t kept a record of certain items, e.g. stationery items then make a guess. We can advise on what HRMC will find acceptable. We can also make sure that you don’t miss anything that you can rightfully claim for.
4. Learn for next year – you don’t have to pay your tax bill until it falls due at the end of January and as noted above, the hefty fines accrue to late filing (submission) – they are not so onerous for late payment. You can file your self assessment return any time from the end of the tax year up until the deadline – so don’t leave it to the last minute next time!
For more information about Carrington Blake’s Self Assessment Tax Return service – please see this page.