Countdown to Self-Assessment Deadline
This blog aims to cover some of the key areas of self-assessment for UK taxpayers including including deadline dates.
TAX TIPSSELF ASSESSMENT
Time is of the essence for U.K taxpayers as the self-assessment deadline looms closer. We're currently entering the festive period- often a very busy time for many of us and as a result of this, January 31, 2024 is not as far away as you may think! It's crucial to take stock of your financial affairs ensure that your online self-assessment tax return is submitted promptly. As an ex-HMRC inspector and now the managing partner of The Tax Faculty LLP, I know first-hand the significance of meeting this deadline and importance of providing valuable insights for a smooth filing process.
Today's blog aims to provide a concise overview of self-assessment in relation to u.k tax-payers, including key deadline dates and systems of reporting with hmrc.
Key points about self-assessment
This critical January 31st deadline applies to various groups, from the self-employed and gig workers to individuals disposing of crypto- assets and landlords renting out property for the first time. New self-assessment taxpayers encompass individuals who have set up side hustles, become newly self-employed, or entered the realm of property rental. It also includes those working in the gig economy, trading on platforms like eBay, earning income through social media advertising, and renting out properties on sites like Airbnb.
Put simply, if you've earned income that hasn't been subject to UK tax, registering for self-assessment is imperative.
Who Needs To File?
· Cryptoasset Gains: Gains on cryptoasset sales are subject to capital gains tax and must be reported on annual returns. For more detailed information on how CGT rates might affect you, visit our specific article on this subject here.
· Child Benefit Charge: The higher rate child benefit charge applies to all earners with an income exceeding £50,000 and must be reported on a self-assessment tax return
· Renting Income: Individuals earning income from property rentals through platforms like Airbnb need to file a tax return if their earnings surpass £1,000.
Some key points to note
Completing your tax return sooner rather than later allows you to assess your liabilities and plan your payments well in advance. If you believe you no longer need to complete a self-assessment tax return for the 2022 to 2023 tax year, inform HMRC promptly to avoid penalties.
Taxpayers can settle their tax bills through the HMRC app. For those unable to pay in full, HMRC offers time to pay arrangements for amounts under £30,000, allowing for online setup without the need for direct communication.
With just 100 days left, the self-assessment deadline is fast approaching. Don't let it catch you unprepared, file your return promptly and ensure a smooth and penalty-free tax season. If you are unsure and in need of advice or simply don’t have the time to do it yourself, contacting a trusted tax professional is always recommended.
Remember, the timely action you take today can save you from unnecessary stress tomorrow.
Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023
The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.
Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.
Read more about Charles and the award here.
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