Preparing for the Self-Assessment Deadline

It’s that time of year again! Martin Quinton, Tax Technician at Whiting & Partners explains who needs to complete a return, when the various deadlines fall and what information you need to complete one.

The self-assessment tax return filing deadline of 31 January 2018 is fast approaching and there are probably hordes of clients frantically packing their receipts into bags and boxes ready to drop them into their accountant.

If you haven’t completed a tax return before but need to, you will need to register for self-assessment with HM Revenue and Customs as soon as possible. Although the registration deadline of 5 October has passed, you are still able to register, but you may be issued with a late registration penalty of £100.

There are a number of individuals who should complete a tax return. For example if, in the last tax year:

• you were self-employed
• you received £2,500 or more in untaxed income, for example from tips or renting out a property
• your taxable income was over £100,000
• your income from savings, investments or dividends from shares was £10,000 or more before tax
• you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
• you were a company director
• you lived abroad and had a UK income

There may be other reasons for an individual to complete a tax return, so if you are uncertain as to whether you need to complete a return, get in touch with Whiting & Partners

For many people December is one of the busiest times, so it’s a good idea to get everything done early to ease the pressure.

Penalties for the late filing of self-assessment Tax Returns are as follows:

• An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time.
• After 3 months, additional daily penalties of £10 per day, up to a maximum of £900.
• After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater.
• After 12 months, another 5% or £300 charge, whichever is greater

In January 2016, HMRC published the following excuses, all of which were used in unsuccessful appeals against penalties for late 2013/14 returns:

1. My tax papers were left in the shed and the rat ate them
2. I’m not a paperwork orientated person – I always relied on my sister to complete my returns but we have now fallen out
3. My accountant has been ill
4. My dog ate my tax return
5. I will be abroad on deadline day with no internet access so will be unable to file
6. My laptop broke, so did my washing machine
7. My niece had moved in – she made the house so untidy I could not find my log in details to complete my return online
8. My husband ran over my laptop
9. I had an argument with my wife and went to Italy for 5 years
10. I had a cold which took a long time to go