Although the 2022/23 tax year may now seem like a distant memory, you still need to remember to submit your Self Assessment tax return on time! Self Assessment is the system that HMRC uses to collect Income Tax from those who receive income from other sources, such as self employment. There are various Self Assessment deadlines in upcoming months, and it’s vital that you’re prepared for them. The upcoming deadlines relate to all income from the period between 6th April 2022 and 5th April 2023.
If this is the first year that you have been required to submit a Self Assessment tax return, then you will need to notify HMRC by 5th October. You can do this by simply registering for Self Assessment.
There are two methods of submitting your Self Assessment tax return: by paper or online, and they have different deadlines. If you are planning to submit a paper tax return, then this must be done by midnight on 31st October 2023. Online submissions, on the other hand, must be completed by midnight on 31st January 2024.
If your tax return is up to three months late, then you will be subject to a late filing penalty of £100. If it’s later than three months, then the penalties go up.
It’s also important to note the deadline to pay any tax owed is 31st January 2024. If you miss this deadline then it’s likely you will be penalised, unless you agree a Time To Pay plan with HMRC. Interest will also be charged on late payments, even if you’ve agreed a payment plan.
An update for next year…
If you’re a PAYE taxpayer who earns over £100,000 PAYE income, then you’ll be aware that you must submit a Self Assessment tax return. However, when the deadline comes around for the 2023/24 tax year, the threshold will be increased to £150,000, reducing the amount of people who are required to submit a return! Although this will not impact your income tax obligations, it will significantly decrease the administrative burden of filing a Self Assessment tax return.
If you earn between £100,000 and £150,000 then you must still submit your Self Assessment tax return for the 2022/23 tax year by the deadlines outlined above. Once the deadline has passed, you should receive a Self Assessment exit letter from HMRC, unless you satisfy other aspects of the criteria.
At Fiander Tovell, we’re on hand to help you navigate Self Assessment as smoothly as possible. For further advice, please do not hesitate to get in touch with a member of our team on 023 8033 2733.
You can find more of the latest accountancy and tax updates here.