Do you need to do a self assessment?
This would mean you’re either self-employed as a sole trader (earning more than £1,000 in the tax year), or a partner in a business partnership.
You may also need to send one if you have any other untaxed income:
- some COVID-19 grant or support payments
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income
If you’re unsure whether you fall into this category, ask your accountant, or check out the government website which gives full details.
If this is you, here are the deadlines and penalties you need to be aware of when doing your self assessment:
5th October - Register for Self-Assessment
31st October at midnight – File Your Paper Tax Return
30th December – Collect any tax due through your PAYE code for the next tax year
31st January by midnight - submission and payment of tax due
31st July by midnight – 2nd payment on account due
- your last Self Assessment tax bill was less than £1,000
- you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
Late filing penalties for Self Assessment
1 day £100
3 months £10 daily up to 90 days (max £900)
6 months 5% of tax due or £300 (whichever is greater)
12 months or later 5% of tax due of £300 (whichever is greater)
Additional penalties may be applied if HMRC believes the taxpayer is intentionally withholding information or trying to evade tax.
Late payment penalties for Self Assessment
30 Days 5% of tax due
6 months 5% of tax due at that date
12 months and later 5% of tax due at that date