Typically, workers are paid using PAYE (Pay as you earn). When using PAYE, national insurance, loan repayments and income tax are taken into account before the employee is paid. However, if you are self-employed and are not using a PAYE system, you need to ensure that all income tax, national insurance and student loans are being paid in full, every year.
What Self-Assessment Covers
The Tax Year ends on the 5th of April, but your tax return has to be completed earlier than that. The deadline currently is the end of February, an extension on the previous January deadline. Once you’ve filed and stated exactly how much you’ve earned, you’ll be informed of any national insurance contribution that you’ll have to pay. Before you start, though, you need to ensure you register with HMRC.
If you have student loans to repay, it will also be calculated when you submit your tax form. The threshold of you payment and how much you’ll actually have to pay is dependent on your plan and your student loans company.
It’s always important to be aware of your self-assessment dates. The deadline for registering for self-assessment has already passed; but the deadline for doing an online self-assessment is January 31st, or February 28th without penalties. Your tax must also be paid in by these dates, but you could be eligible for an extension of up to April 1st
Failure to comply will result in your receiving fines. If your tax is 3 months late, you’ll have to pay a £100 fine. On top of this, you could also be charged interest on your tax.
How We Can Help
Here at Carrington Blake Accountancy, we’re experts in giving you the services you need. Whether it be helping you register with HMRC to complete your self-assessment, or completing the return entirely. If you’ve been unsatisfied with the way your current accountant has handled your return, contact us and we’ll guarantee satisfaction. Don’t delay, though the deadline for self-assessment has been extended, you still only have a month left!