HMRC TAX DEADLINE LOOMS FOR NEWLY SELF-EMPLOYED
Anyone submitting a self-assessment tax return for the first time will need to register by 5 October and complete their return by 31 January 2019.
HM Revenue and Customs is reminding customers that time is running out to register for self-assessment. Anyone that is unsure whether they need to file a tax return is being urged to check the Government website.
All sole traders and directors of limited companies must submit a self-assessment tax return. In addition, the following people must complete a tax return:
- Employees claiming expenses in excess of £2,500 per tax year;
- Anyone with an annual income over £100,000;
- Those who earn more than £2,500 from renting out property;
- Anyone with a partner who receives Child Benefit and they or their partner has an annual income of more than £50,000;
- Anyone with more than £2,500 in other untaxed income, for example from tips or commission.
Angela MacDonald, HMRC's director general of customer services, said: "January may seem a long time away but if you've not done self-assessment before and you're now eligible you need to register. We know that some customers don't always realise they need to do self-assessment … so please check if this applies to you. It's really easy to do and doesn't take long. If you're not sure, go to gov.uk and all the information you need is there."
HMRC also offers online webchats, live webinars, YouTube videos and social media support for customers which can be accessed at any time, and on any device, to help them fill in and file their returns. The self-assessment helpline number is: 0300 200 3310.
The penalties for late tax returns include:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
- After three months, additional daily penalties of £10 per day, up to a maximum of £900;
- After six months, a further penalty of 5% of the tax due or £300, whichever is greater;
- After 12 months, another 5% or £300 charge, whichever is greater.
Original source startupdonut.co.uk