Self-assessment is an annual task for anyone that is not automatically imposed, for example, if you are self-employed or receive payments from private work as a freelancer or contractor. More than 12 million people are expected to file a self-assessment tax return this year.
Whether you’re new to self-assessment or you’ve been completing your tax return for many years, according to HMRC, now is the best time to start thinking seriously about the task.
Preparing your documents now can help you avoid the unnecessary stress of waiting for them at the last minute, preventing you from making mistakes or forgetting to include all of your relevant information.
If you are self-employed and earned more than £1,000 between April 6, 2021 and April 5, 2022, you will need to file your tax return online by January 31, 2023 or October 31, 2022, for those submitting paper statements.
If this is your first time filing a tax return, you should make sure you allow enough time for register for self-assessment first via GOV.UK in order to receive your Unique Tax Reference (UTR) and activate your account. Self-employed people must also register for Class 2 National Insurance contributions.
By registering early, you will be able to access advice to help you understand your tax obligations such as record keeping, filing and payment deadlines, and to get an idea of how much you may have to pay when you register. your first tax payment. at HMRC. Sometimes deposits are due and you can find out more about this by searching for ‘deposits’ on GOV.UK.
Thousands of people have chosen to get a head start this year – almost 66,500 taxpayers filed their tax returns on April 6, 2022, the first day they could – giving them 9 months to budget before the payment deadline.
Filing early means you know how much tax you owe. The earlier you file, the more time you have to plan and make financial arrangements for the tax you need to pay. And that doesn’t mean you have to pay your tax early, you still have until the January 31 deadline to pay your tax. If you owe a tax refund, you can claim it sooner.
Early deposit also means you can access a full range of payment options to find the one that suits you best, such as making payments through the HMRC app. It’s simple, convenient, fast and completely secure. To download the free HMRC appyou can visit the App Store from your iPhone or Google Play for Android and follow the download and setup instructions.
For those who are unable to pay their full tax bill, make sure you have access to the support and advice that is available to you. We may be able to help you by arranging an affordable payment plan. Visit GOV.UK and search for ‘time to pay.
Remember that if you have received any payments from the Coronavirus Support Scheme, including the Self-Employment Income Support Scheme or the Coronavirus Job Retention Scheme, you will need to include details of all payments that you received in the 2021 to 2022 tax year on that year’s tax return.
So start preparing for your self-assessment now and allow yourself plenty of time to gather the relevant documents. Check that your information is correct and allow time to enter your details. The easiest way to file your tax return is online. You can do this at a time that suits you, and it doesn’t even have to be done in one sitting. You can work around your busy schedule and business or professional commitments by saving your progress in stages and coming back to it again and again.
To find out more visit Self evaluation on GOV.UK.