The Self Assessment Deadline Is Coming—Are You Ready?

If you’re self-employed, you need to let HM Revenue and Customs (HMRC) know how much money you made in the year ended 5 April 2022 and pay any tax you owe. It’s something that we often put off because it seems like a mammoth task, but the reality is that if you are organised and proactive, it doesn’t need to be the burden it so often is to so many people.

If you want some guidance on getting yourself prepared, keep reading as we give you a rundown of what you’ll generally need! And remember, you don’t have to do it alone. Countplus is always on hand to help you out, just get in touch!

Let’s dive in.

Who Needs To File a Self Assessment Tax Return?

This could be a whole article in itself, but the most common situation where you’d need to file a Self Assessment Tax Return is if you are self employed and have earned over £1000 in the financial year. Here’s a brief rundown of the other criteria that will require you to file one:

  • You earned more than £2,500 from income that wasn’t taxed (like commission or tips)
  • Rental income was more than £2,500
  • Investment or savings income was more than £10,000
  • You owe Capital Gains Tax on profits (from the sale of properties, shares etc)
  • You, or your partner earned over £50,000 and you claimed Child Benefit
  • You’re a director of a company (apart from non-profit organisations)
  • Your state pension was more than your personal allowance
  • You’re a trustee

If you work for a company and are taxed through PAYE, it’s unlikely you’ll need to file a Tax Return. Still not sure? Get in touch with us or use the HMRC tool.

If You Haven’t Before, You’ll Need To Register For Self Assessment

Unfortunately, if you’re reading this after October 2022, you’re already a little late if you’re not already registered for Self Assessment, and so you may face penalties for late registration. The same goes if you wanted to submit a paper Tax Return, although this is becoming more of a rarity now with online submissions being so easy and accessible.

Once you’ve registered, you’ll be sent a UTR – a Unique Taxpayer Reference. You’ll need this to file your Tax Return. If you’re already registered, you should already have this.

The next step is to set up a Government Gateway account. This is where you’ll fill in and file your Self Assessment Tax Return.

The Information You’ll Need To Submit Your Tax Return

The deadline for online submissions is midnight on the 31st of January, and this is the payment deadline too, so it’s best to get your Tax Return submitted in plenty of time to arrange payment. The process can look a little daunting but it’s really not as difficult as you think. 

Here’s what you’ll need:

  • Your UTR
  • Your National Insurance Number
  • Your untaxed income from the year 6 April 2021 to 5 April 2022. This includes;
    • Self-employed income
    • Interest
    • Dividends
  • Details of expenses incurred related directly to your self-employment
  • A P60 (if you have one) which details income you’ve already paid tax on
  • Any other records of income you’ve paid tax on
  • Pension or charity contributions – you may get tax relief on these

There are great resources as you go through the tax return. Look out for question mark icons along the way—these will help you if you’re unsure.

Different Sections of the Tax Return

The main part of a Self Assessment Tax Return is called the SA100 and it is related to income received through dividends, interest, and benefits. It’s also related to things like charitable donations and pension contributions.

There are also sections called “supplementary pages” within a Tax Return. Here is a list of them:

SA101: Additional Information

SA102: Employment

SA102M: Ministers of Religion

SA102MP: Parliament

SA102MLA: Northern Ireland Legislative Assembly

SA102MSP: Scottish Parliament

SA102WAM: The National Assembly for Wales

SA103S: Self-employment (Short)

SA103F: Self-employment (Full)

SA103L: Lloyd’s underwriters

SA104S: Partnership (Short)

SA104F: Partnership (Full)

SA105: UK Property

SA106: Foreign

SA107: Trusts etc

SA108: Capital Gains Summary

SA109: Residence, remittance basis etc

SA110: Tax Calculation Summary

Don’t worry, as you can see, most people will only have to fill out a couple of these. The most common are SA103, SA105, and SA108.

SA103 – Self-Employed Income

The Form SA103 is relating to self-employment. You’ll need to enter your turnover and your expenses. Turnover is the total money you’ve received in the year, before you deduct expenses.

You can submit the expenses in two ways;

  • As a total amount, without the need to itemise them (for individuals with turnover less than £85,000)
  • As an itemised breakdown, with totals for each kind of expense and a grand total at the end (for individuals with turnover more than £85,000)

While it’s good practice to keep receipts and invoices for your expenses, there isn’t a requirement to send proof of expenses upon submitting your Tax Return.

SA105 – Rental Property

There are two sections you’ll need to fill out for rental income. The first section relates to income from fully furnished holiday lettings in the UK, and the second is for all other rental income. 

If you rent property in the EEA, you’ll need to fill out income from these separately.

There are a number of expenses you can claim relating to property rental;

  • Repairs and maintenance
  • Insurance, ground rent, and rates
  • Professional and legal fees
  • Loan interest

SA108 – Capital Gains

Capital gains tax is a tax you pay on the disposal/sale of an asset that is worth more than it was when you acquired it. You’ll need to provide a breakdown of each aspect of these gains when you fill out the form.

Expenses, when related to Capital Gains, are called “allowable costs”. An example of an allowable cost is an improvement or upgrade to a property. Note: the expense must still be present in the property at the time of sale, ie. you can’t claim for a new bathroom suite if you remove it before you sell.

Paying Your Tax

As we mentioned, the deadline for paying your tax is the 31st of January at midnight. There are penalties for late submissions, but if you are concerned that you aren’t able to pay the whole amount at once, you can set up a payment plan with HMRC. This will mean you avoid penalties for not paying the tax in full, and it can be easier to manage payments.

Give Yourself Time To Ensure You Don’t Miss the Self Assessment Deadline

When it comes down to it, as long as you’ve kept records throughout the year and have your paperwork in order, filling out and submitting a tax return needn’t be a headache.

However, we understand the reality that running a business can be messy and difficult. We’d really encourage you not to sweep things under the carpet and risk missing the Self Assessment deadline, so if you are feeling a little overwhelmed at the prospect of doing your Tax Return yourself, please get in touch with Countplus today. We’re here to help!

Check out some other articles on our blog if you found this informative.

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