The DLA recently received a guide from Jashoda Pindoria, Head of Self Assessment Operations at HMRC, regarding self assessment.
Due to the length of the communication, below are the top tips provided in the guide; however, you can read the guide in its entirety here, which we would recommend.
Self Assessment is the process used to declare and pay tax owed on untaxed income. If you are employed, then your employer will deduct any tax owed (Income Tax and National Insurance) before they pay you. This is known as PAYE (pay as you earn) and is also known as being taxed at source. But if you have any additional income, which has not been taxed, you may need to do a tax return.
If you don’t have an employer deducting your tax or National Insurance, you may be required to do a Self Assessment tax return. If you need to complete Self Assessment, you must register via GOV.UK.
The Self Assessment deadline for the 2022 to 2023 tax year is 31 January 2024. You must file your tax return and pay any tax owed by the deadline. If you miss it, you may incur penalties.
HMRC’s tips for getting it right
Plan ahead – when you are ready to start, get all the documents you will need together so you don’t have to search for them at a later date.
Take your time – accuracy is important when completing your tax return. Give yourself plenty of time to fill it in and don’t rush.
Go online for help – there is help and support available on GOV.UK to help you get your tax return right. But if you’re not doing it yourself, you can appoint someone to fill in and send your tax return, for example an accountant or tax adviser. If you need extra support to help your with Self Assessment you can contact a voluntary or community sector organisation who can provide you with help and advice.
Remember the deadline – it’s 31 January 2024. Put it in your calendar or set a reminder on your phone. If you miss the deadline, you risk facing penalties.
Don’t forget to press ‘submit’ – if you’re filing online, don’t forget to press the ‘submit your tax return’ button. HMRC won’t receive your tax return until you press that button and if you miss the deadline you could incur penalties.
If your circumstances change – remember to tell HMRC if you close your business or you are no longer self-employed. Don’t assume they will know. You could still incur fines and penalties after your business has stopped trading if they aren’t informed. Tell them on the HMRC app or via GOV.UK. https://www.gov.uk/tell-hmrc-changed-business-details