Earlier this year, HM Revenue & Customs introduced a new payment deadline for taxpayers submitting their Self-Assessment forms.
Widely referred to as the tax return, this form is typically completed by individuals who are self-employed or those who have earned an additional income in the past year and it allows HMRC to accurately assess an individual’s tax obligation.
The Important Dates:
Though the deadline for new contractors wishing to register for self-employment has passed for the 2016/17 financial year, what’s more important to take into account is the new due date for submitting tax returns via the HMRC website is January 31, so in order to be prepared for the fast approaching date it’s advisable to organise relevant authorisation codes and passwords.
Even for those who were unable to register for self-assessment, it’s wise to notify HMRC of any professional projects, changes in employment status or formation of a limited company as neglecting to do so could lead to a considerable penalty fee.
Individuals who plan on paying their self-assessment bill with a credit card will need to pay their tax liability by 13 January 2018.
Who Should Apply?
Should one choose to use a personal bank account in order to pay you self-assessment bill it’s highly recommended that the individual produces all the required information to accurately fill out the tax return in sufficient time to comply with the updated deadline.
Payments made using business, commercial and company bank cards won’t be impacted by this amendment.
In most cases, registry is necessary for taxpayers who are self-employed and individuals who receive more than £10,000 before tax from savings or investments in addition to a salary. However, this also applies to those with earning the same amount in additional income from share dividends before tax and profits made from selling assets such as shares and second homes.
The same goes for recipients of Child Benefit who earn above £50,000 per year and those who under payed tax from the previous year.
Expatriates with British income must also register for self-assessment, similarly to UK residents with foreign income.
Put simply, those generating revenue by way of a system alternative to Pay As You Earn must complete a self assessment form annually in order to declare their earnings and determine how much tax is owed.
Company directors as well as shareholders pulling taxable assets along with the self-employed are obligated to execute a self-assessment as well as filling out an yearly individual tax return outlining revenue sources within nine months of the tax calendar’s end.
For taxpayers who remain uncertain of whether they are eligible for self-assessment tax, there’s more information regarding suitable people and the various changes affecting self-employed workers which is available on the HMRC website along with a questionnaire that can assess whether you qualify and a tax calculator.