Self-employed advised to start tax return process early

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Late self-assessment tax returns could cost taxpayers £100 a day.

With less than 3 months until the self-assessment deadline for 2018/19, taxpayers who have not yet started their self-assessment tax return are being advised to do so without delay.

As many catering equipment distributors are privately-owned SMEs, a lot may fall into the self-assessment category.

With those earning any self-employment income in tax year 2018/19 facing their first tax return deadline on 31 January, DSR Tax Claims’ David Redfern stated: “The deadline for informing HMRC that you were self-employed during the previous tax year was 5 October. By registering for self-assessment, you will not only receive your authorisation code for online self-assessment but you will also receive your UTR or unique taxpayer reference. You will need both of these in order to complete your tax return online.

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“HMRC sends this kind of information by post, never by email or over the phone, which means that it is important to leave yourself enough time to receive this information. It is also wise to keep it safe.”

He continued: “If you made any income from self-employment during tax year 2018/19, whether or not that is your only income, you will need to declare this to HMRC via a tax return and if your earnings are above the personal allowance threshold, currently set at £12,500, you will have to pay tax on your earnings.”

Redfern explained: “Even those who are used to filing tax returns would find it far less stressful to get their self-assessment tax return completed and submitted as soon as possible and it is doubly wise to do so if you are a beginner to the process.

“You can save your tax return as you go along and don’t have to complete in one go but the later you leave it, the more likely you are to run into unforeseen problems and difficulties – maybe you don’t have all the information you require or have technical difficulties.

“While HMRC accepts reasonable excuses for delays in submitting, if it deems the problem to be yours and yours alone, they are less likely to be lenient, and with a £100 penalty for being just a day late, it isn’t worth it. By starting early, you not only have chance to sort out any little hassles that may crop up on the way, you also have time to do it slowly, lessening the chances that you will make any silly mistakes.”

Tags : businessDSR Tax Claimsfinancetax
Clare Nicholls

The author Clare Nicholls

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