Self Assessment Registration Deadline: 5th October

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Self Assessment Registration Deadline: 5th October

The deadline to register for self assessment is the 5th October in your businesses second tax year.

Self Assessment Registration Deadline: 5th October

What is a Tax Year

The HMRC tax year runs for 6 April to 5 April.  When you are self employed it’s important to remember that everything you report on is based on this.

When is the Self Assessment Registration Deadline

The deadline to register for self assessment is the 5th October in your businesses second tax year.

So if you became self employed on 1 March 2018 then you need to register by 5th October 2018.  The first tax year being from 1 March 2018 to 5 April 2018.  The second tax year beginning 6 April 2018.

Who Needs to Register as Self Employed

Anyone who earns more than £1,000 in untaxed income needs to register as self employed.

If you make less than £1,000 (in income not profit) then you may be entitled to use the HMRC Trading Allowance. This means that you don’t need to let HMRC know about your extra income or submit a tax return.

If you make more than £1,000 (in income not profit) then you need to register as self employed and declare your earnings to HMRC.

You can register as Self Employed online.  It’s fairly easy to do yourself and I’ve put together a video guide here.

How Do I Register as Self Employed in the UK?

What Happens Once You Are Registered

You will need to complete a tax return form online every year to declare your earnings. A Tax Return is a form you need to complete online once a year by 31 January each year. The penalties for missing this deadline start at £100.

A tax return contains:

  • Your personal details;
  • A summary of all your income not just Deliveroo (like bank interest, employment income and rental income);
  • Details of allowable expenses you wish to claim against your taxes;
  • A tax calculation;
  • How much tax you need to pay.

One tax return form covers a tax year.  A tax year runs from 6 April to 5 April.  So a tax return for 2017/2018 covers earnings during 6 April 2017 to 5 April 2018 and needs to be filed by 31 January 2019.

You’ll need to pay tax due by this date too, as well making a contribution of 50% towards your next years tax bill.  This is called a Payment on Account.

You’ll need to make a payment on account if:

  • Your tax bill is over £1,000
  • You pay less than 80% of the tax they owe through the payroll system

There are proposed changes to the reporting system called Making Tax Digital.  This will abolish the current system of reporting once a year and replace it with quarterly reporting and tax payments.  This change currently on hold but will be enforced at some point.

Tax and National Insurance When You Are Self Employed

What Happens if You Miss the Deadline to Register as Self Employed

There are penalties for missing this deadline, which can be up to 30% of your tax liability.

Head over to the Business Hub. It’s full of templates and guides to help get your started and manage your finances when you’re self employed. And don’t forget to find me on Facebook.