The government says it wants everyone to register for Self Assessment, but some people are still missing out. If you earn less than £100,000 a year, you don’t need to do anything – just keep paying the standard amount of Income Tax. But if you make over £100,000 a YEAR, you’ll want to check whether you’ve already registered. And if you haven’t, you’ll need to do something about it. Here’s what you need to know…
If you earn under £100,000 a Year, you don’t need do anything – just keep on paying the standard amount of tax. But if you earn over £100,000, you’ll need to check whether you’ve registered for Self Assessment. If you haven’t, you might need to do something about that.
If you have never filed a tax return,
Registering for self assessment allows you to pay less tax, even if you are a small business owner. If you haven’t filed your tax return before, it might make sense to do so now. This way, you’ll know what you owe and how much you’re paying. You won’t need an accountant to file your taxes either.
If you’ve already submitted a tax return online,
The government wants people to use the self assessment system to help save money. This includes filing a tax return online. If you haven’t done this before, there are some things you need to consider.
You don’t need to pay anything extra to register for Self Assessment. If you have previously filed tax returns but did not file one last year, you must re-register online (form WF01) for Self Assessment and class 2 national insurance. You will require your ten-digit unique taxpayer reference number (UTR).
You can find out how much you owe and make payments online.
You can file a tax return anytime up until midnight on April 17th.
If you have previously submitted a tax return but did not use the online service,
Sign in to your business tax accounts and add Self Assessment. If you don’t already have a business tax account, you can set up an account now. Once you’re logged into your account, scroll down to ‘Add a Business’. Click on ‘Create New Account’ and follow the prompts.
Once you’ve done this, you’ll need to enter your unique taxpayer reference number (UTR). This is the 10-digit number you receive when you register for Self Assessment. You can find your UTR by logging into your previous tax records, selecting ‘My Records’, clicking on ‘Tax Details’ and entering your full name and date of birth.
Frequently Asked Questions
When must I register as self-employed?
According to HM Revenue & Customs (HMRC), you should register at the latest possible moment. There are deadlines too. You must register within five months of becoming self-employed, ideally by 5 October. If you don’t, you risk paying a fine.
You can start preparing early though. A lot of people use software like Xero to keep track of their accounts, which makes it easier to see how much money you owe. You can even set up automatic payments. Then, once you’ve registered, you’ll want to make sure you update your records regularly.
However, there’s a catch. You need to register with HM Revenue & Customs (the government department responsible for collecting taxes). This isn’t something you can just do online. Instead, you need to go to HMRC’s website and fill out a form. Once you’ve done that, you’ll need to pay £27.50.
Once you’ve completed the form, you’ll receive a confirmation email. You need to print off a copy of the letter and take it to a post office to send it. If you fail to register by the deadline of 5 October, you can still apply for an extension. But you won’t be able to claim any deductions or credits during that period.
What if I have a limited liability company?
Limited companies are a great way to structure your small business. They’re easy to set up, offer many benefits and are often cheaper than sole traders. But there are some things you might want to consider before getting into one. Here we take a look at how to set up a limited company – including everything you need to know about its pros and cons.