The deadline for submitting a self-assessment paper tax return has been and gone for another year. The annual deadline for submitting your online self assessment tax return and paying any tax owed is midnight on 31st January.
Do I need to fill in an online self assessment tax return?
- your self-employment income was more than £1,000
- your income from renting out property was more than £2,500 (you will need to contact HMRC if it was between £1,000 and £2,500)
- you earned more than £2,500 in untaxed income, for example from tips or commission.
- your income from savings or investments was £10,000 or more before tax.
- you need to pay Capital Gains Tax on profits from selling things like shares or a second home.
- you’re a director of a company (unless it was a non-profit organisation, such as a charity)
- you, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
- you have income from abroad you need to pay tax on, or you live abroad but have an income in the UK.
- your taxable income was over £100,000
- if you earn over £46,351 in the 2018/19 tax year (£50,001 for 2019/20) and make pension contributions you may have to complete an assessment to claim back the extra tax relief you’re owed
- you are a trustee of a trust or registered pension scheme
- your State Pension was more than your personal allowance and was your only source of income
- you received a P800 from HMRC saying you did not pay enough tax last year.
Benefits of submitting an online self assessment tax return
As well as an extended deadline, there are several benefits to submitting your online self assessment tax return.
- Your bill will be calculated automatically, so you’ll know instantly how much you owe or how much is owed to you. You will also get a faster repayment if HMRC owe you money.
- You’ll receive instant confirmation from HMRC. Once you click submit you will receive an online confirmation with your reference number.
- Your tax form will personalise to you. The online tax return program reacts to the answers you give, which automatically removes any sections that do not apply to you. If you fill in a paper tax return, you’ll need to work out for yourself which sections are relevant. If you have previously completed an online tax return, HMRC’s system will also pre-fill your online tax return with the information it already has on file, such as your address and National Insurance number.
- HMRC’s software will also highlight any obvious mistakes, this is extremely important as you may be fined for inaccurate information.
How to avoid missing the deadline
Online tax return deadline: 31 January
A common reason for missing the tax return deadline is waiting for additional figures. In this instance it is better to complete and submit the form on time with an estimated figure. You’ll be better off submitting an estimated figure and filing your return on time. There is a box you can tick to highlight that the figures are ‘provisional’. Once you have the accurate figures you can update HMRC. HMRC deadlines are strict.
How much is the fine if I miss the tax return deadline?
If you don’t file your tax returns and pay any tax due on time, you will be fined by HMRC. There is an automatic fine of £100 for anyone who is required to file a tax return but misses the deadline. This will be added to your online account (if you have one). This fine is applicable even when no tax is owed. If you fail to file within three months – that is, by the end of April – HMRC can then impose an additional £10 daily fine for the next 90 days, increasing the total penalty by £900 to £1,000.
Thomas Nock Martin West Midlands Chartered Accountants
If you are unsure as to whether you need to complete an online self assessment tax return, or need help completing your online self assessment tax return get in touch with Thomas Nock Martin today on 01384 261300. Our tax return services can help you with how to file an income tax return and help save you money.
If you have found this blog helpful, you may wish to read our previous blog on Furnished Holiday Lettings Tax.