As a self-employed person or sole trader, there are some important dates during the tax year that you need to remember to avoid getting yourself in trouble with HMRC. The UK tax year runs from 6th April to the following 5th April.
As a business owner, these dates are your responsibility to remember, and missing deadlines can result in penalties and fines.
Put the dates below in your diary to help yourself get everything organised in advance and avoid landing yourself in trouble.
5th April 2019 – the end of the tax year
Shortly after the end of the tax year on 5th April, those required to file a tax return will receive a notice advising that you must file a tax return for the tax year just ended.
31st July 2019 – Making a second ‘payment on account’
If you were self-employed during the 2017-2018 tax year and owed tax over £1,000 you may need to pay a second ‘payment on account’. This payment is due by 31 st July 2019.
5th October 2019 – Let HMRC know you’re self-employed
If you have set yourself up as self-employed in the last tax year you will need to inform HMRC so they are aware that you will need to complete a tax return next year. The deadline for this is 5th October 2019.
31st October 2019 – File a paper self-assessment
If you want to file a paper self-assessment return for the tax year 2018-2019 this needs to be done by 31st October 2019. However, we strongly recommend filing your tax return online as paper returns may be phased out soon by Making Tax Digital.
30th December 2019 – request tax to be collected through PAYE
If you’re employed as well as self-employed and already have income taxed through PAYE you can request that HMRC also collect any self-assessment tax via the same method. In this case, your Self-Assessment tax return must be filed by 30th December 2019.
31st January 2020 – Tax return deadline
The tax return deadline for filing your online Self-Assessment for the tax year ending 5 April 2019 is midnight on 31st January 2020. There is a penalty of £100 for tax returns up to 3 months late. The later the payment, the more you’ll pay. You will also be charged interest on any late payments.
What is a Self-Assessment return?
If you haven’t filed a Self-Assessment return before, this is the process where the self-employed inform HMRC of their income, gains and expenses for the last tax year. You can file this online and once completed, the form will work out how much tax you need to pay.
Some of the dates above may not apply to you, feel free to get in touch with us here at Magpie Accountancy if you have any questions about filing your Self-Assessment return or when you need to make payments.