With the deadline to file your 2018/19 self-assessment now less than 80 days away HMRC is encouraging taxpayers to complete them before the busy period arrives. Filing even 1 minute past the 23:59 deadline on 31st January could result in an instant penalty.
HMRC have published their annual reminder nudging taxpayers to try avoiding the busy Christmas and New Year period.
Do I need to file a self-assessment?
Not sure you need to file a self-assessment? Ask the team at KARA for guidance if you are unsure, however the criteria is as follows:
- Your self-employment income was more than £1,000
- Your income from renting out property was more than £2,500 (you will need to contact HMRC if it was between £1,000 and £2,500)
- You earned more than £2,500 in untaxed income, for example from tips or commission.
- Your income from savings or investments was £10,000 or more before tax.
- You need to pay Capital Gains Tax on profits from selling things like shares or a second home.
- You’re a Director of a company
- You have income from abroad you need to pay tax on, or you live abroad but have an income in the UK.
- Your taxable income was over £100,000
- You are a trustee of a trust or registered pension scheme
- Your State Pension was more than your personal allowance and was your only source of income
- You received a P800 from HMRC saying you did not pay enough tax last year.
More information on self-assessment tax returns can be found in HMRC’s guidance.
Using an Accountant to complete your tax return.
If you’re unfamiliar with HMRC’s forms you could make an error in your return which could result in penalties. An accountant however will ensure that your return is completed accurately and can even take care of your tax return for you. A huge benefit during the busy festive period, giving you peace of mind and more time to enjoy the festive season.
Lastly, using KARA Accountancy to complete and file your self-assessment earlier means you can receive personalised tax advice to help you legally reduce your tax bill and plan your cash flow in the future.