The tax year for self-assessment covers the tax year from 6th of April 2016 to the 5th of April 2017. This is important as only these dates must be included in your tax return when working how much tax is owed. It is best to consult an accountant for guidance on this issue.
HMRC Self-Assessment Deadline
HMRC have a deadline for online self-assessment tax returns. All tax returns must reach them by the 31st of January 2018. If you have not completed your tax return online before, then you will have to register with HMRC first. This process takes up to 20 days and should be done well before the deadline date.
Paying your tax
Paying your tax owed to HMRC must also be done by the 31st of January 2018. The full amount must be paid by this deadline to avoid any penalties.
The following groups must complete a self-assessment:
- Those who have income from tips or rent from property is £2,500 or more
- Those that have income from savings or investments which is £10,000 or more before tax
- Those that have income from dividends which is £10,000 or more before tax
- A company director
- If you or your partner’s income is £50,000 or more and one of you has claimed Child benefit
Penalty for Missing the Deadline
A penalty for missing the deadline means that you will receive a penalty. This penalty is £100 if your tax return is 3 months late and notably more if you your tax return is even later. There is also a penalty if you tax bill is paid after the deadline.