A Tax Guide for The Self Employed
Managing your tax can be daunting, especially knowing what to do and when. In this blog, we cover all the key dates you need to know, which will hopefully help you to keep on top of your taxes.
Do you need to submit a self-assessment tax return?
You will need to register with HMRC if any of the following points apply to you:
- You earn more than £1,000 from self-employment in a tax year (which runs from 6th April to 5th April).
- You want to qualify for benefits by making voluntary Class 2 National Insurance contributions.
- You require proof that you are self-employed.
If you fall into any of the above categories, you can register quickly and easily via the GOV.UK website, either online or by post.
You need to ensure you've told HMRC that you need to complete a tax return for the previous tax year by 5th October. If you inform HMRC after this date you could be liable for a penalty.
Key dates
There are a number of key dates you need to remember when it comes to your tax return. Add the following dates to your diary to ensure you don't miss any deadlines:
- 5th October: Deadline to register with HMRC if you have never previously submitted a tax return.
- 31st October: Deadline for submitting paper tax returns.
- 31st January: Deadline for filing online tax returns.
- 31st January: Deadline for paying part of your self-assessment tax bill. If you have any outstanding remaining balance from the previous year, you will need to pay it by midnight on this date. If you make advanced payments, you will need to make your first payment by the same date.
- 31st July: Deadline for paying the other part of your tax bill.
It is important to manage these deadlines as any missed submissions or payments could lead to a penalty.
VAT
If your business income exceeds £85,000 or you know it will, you need to register for VAT (Value Added Tax).
You need to submit a VAT return every three months or four times a year.
If you’re still unsure as to whether you need to submit a tax return or when you need to submit it, you can find more information on the Government website. Alternatively, you can contact an accountant in your local area who will be able to guide you through the process and ensure you tax is kept on track.*
*Information correct at time of publication but do check the Government UK website for its latest guidelines on tax.
