Who Needs to File and How We Can Help
Are you someone who puts off filing your Self Assessment until the last minute? You’re not alone, but it’s definitely not the best way to do it! The end of January might seem like it’s a long way off right now, but once the festive season has passed, you’ll be surprised at just how little time you have left to get everything in order. That’s where we come in! Here at Outsource Financial Solutions, we specialise in Self Assessment help.
Here is everything you need to know about completing and filing your Self Assessment tax return.
Overview
• The Self Assessment deadline is on the 31st of January
• Failing to file yours by this date could result in fines
• Those who need to pay include the self-employed and those with significant savings and investment income
• We can complete and file your Self Assessment return for you
Who needs to file a Self Assessment tax return?
Knowing if you need to complete a Self Assessment return or not is the first step.
If any of the following apply to you, then you will probably need to submit a Self Assessment:
• You are self-employed with an income greater than £1,000
• You are a company director
• Your income is £100,000 or more
• Your savings or investment income is more than £10,000 before tax
• You received foreign income
• You are a Child Benefit claimant and earned more than £50,000
• You have untaxed income, such as renting out a property of more than £2,500
Still not sure if you fit into any of the above categories? Don’t worry. Just get in touch with us, and we can tell you if a Self Assessment is a necessary step for you.
When is the Self Assessment deadline?
The Self Assessment deadline is the 31st of January. This is the same every year, so it is a date that you will or have already become very familiar with! If you don’t submit your return on or before this date, you will be liable for fines that can mount up over time.
How to file a Self Assessment
Lots of customers come to us wanting to know how to file a Self Assessment. You complete and submit your application online, or we can do it for you! Leaving your Self Assessment to us means that you can be sure that it has been completed correctly, and you pay exactly what you owe. As we prepare your Self Assessment, we can also find ways for you to streamline your tax liabilities and remain in full compliance with HMRC rules.
What Happens If You File Your Self Assessment Late
Missing the 31 January deadline can carry serious consequences – it’s not just about paying late, but also being penalised. Here’s what you need to know:
- Late filing penalties
- If your self assessment is late to submit, HMRC charges a fixed £100 penalty straight away.
- After 3 months of delay, a further £10 per day charge kicks in – up to a maximum of £900.
- At 6 months late, there’s an extra penalty of 5% of the tax due (or £300, whichever is higher).
- After 12 months, another 5% (or £300) is charged again.
- Late payment charges
- If you pay your Self Assessment tax late, HMRC adds a penalty of 5% of the outstanding tax at three points: 30 days, 6 months, and 12 months after the due date.
- On top of that, you’ll also pay interest on the unpaid amount.
- What’s the fine / penalty?
- The “fine” for late self assessment really depends on how late you are: from the fixed £100 to daily penalties, to significant percentage-based charges.
- You can estimate your penalties using HMRC’s online tool to get an idea of what you owe.
- Can you appeal?
- Yes, if you have a reasonable excuse (e.g. illness, bereavement) for filing or paying late, you can appeal the penalty.
- But be ready: HMRC will ask for evidence, and if your appeal is rejected, you’ll need to pay interest on both the tax and the penalty from the original due dates.
Don’t put it off!
Getting the help you need from an experienced Self Assessment accountant means that you can say goodbye to the stress and panic of trying to get your return completed right before the deadline. So why not get in touch with us today? We can’t wait to hear from you and give you all the right support.
