SELF-ASSESSMENT TAX DEADLINE – 31ST JANUARY

HAVE YOU FILED YOURS YET?

Calling all freelancers, self-employed or employed people with Self Assessments Returns still to file with HMRC. The deadline is fast approaching.

As the festive over indulgences start to wear off, why not use this break from your normal work load to get ahead with your finances?

You have until the end of January to get the information filed with HMRC and any tax payment over to them, so don’t delay any longer.

WHAT IS SELF-ASSESSMENT AND WHO NEEDS TO FILE?

  • Self-Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.
  • Tax is usually deducted automatically from wages, pensions and savings.
  • However people and businesses with other income (in addition to, or instead of income which is taxed at source) must report it to HMRC in a tax return.
  • Income can be from additional wages or savings for example, where tax is not already deducted.
  • If you earned income which hasn’t yet been taxed, between 6th April 2015 and 5th April 2016, then you should have already registered for your self-assessment online account (by October 2016) and have your Unique Tax Reference (UTR) number.

DEADLINE – WHAT, WHEN, HOW?

  • Self-assessment reports need to be filed with HMRC by 31stJanuary 2017. This needs to be online as the deadline for paper filings has passed (31st October 2016).
  • The tax amounts due to be paid to HMRC need to be in the HMRC bank account by 31st January 2017.
  • Allow up to 3 working days for Bacs transfers to reach HMRC and allow up to 5 days for new direct debits. Then check your HMRC account online to ensure it has been received and allocated to your account.
  • Pay by bank transfer. Tip: be careful to use the current year’s reference so that it is allocated against the correct account/tax year.
  • Pay on time or there is a penalty of £100, for late payments made during the first 3 months after the deadline. The penalty then increases.
  • Earned income after 6th April 2016? Then register now for self-assessment for next year.

NEED HELP TO FILE?

  • If you are already registered for self-assessment for the year 6th April 2015 – 5th April 2016, or if you need help registering for the tax year 6th April 2016 – 5th April 2017, then get in touch with us at Pinnacle.

TIP: NEED HELP BUDGETING FOR YOUR TAXES

  • You can elect to pay HMRC a monthly amount to help you budget your annual tax bill.
  • You select the amount and pay via direct debit. You then pay the difference when you have filed your tax return.
  • For more help there is more information on the HMRC website.

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