The deadline for submitting your Self-Assessment Tax Return is 31st January 2022, but it’s a good idea to start getting your finances in order so that you don’t have a last-minute panic.
While the form looks complicated, ensuring you have all the right information to hand is the most important aspect for preparing to submit your form to HMRC
If you do have trouble, our team supports thousands of freelancers and small business owners to manage their accountancy online, including their Self-Assessment Tax Return. Here we explain more about what’s involved.
Who needs to complete a Self-Assessment?
Generally, if you are self-employed or a director of a limited company, you’ll need to submit a self-assessment tax return. However, there are also lots of other reasons you may need to submit one e.g. you have investments, rental property, higher-rate tax payer, have overseas income or claiming reliefs and allowances, are just a few examples.
What are the deadlines for submitting your Self-Assessment?
For the current tax return, you’ll need to declare income and allowances up to the 5th April 2021 and you will have until 31st January 2022 to complete and submit this to HMRC (31st October 2021 if using a paper submission).
Any additional tax payment based upon your income, is also due by the 31st January 2022.
We have grouped the relevant deadlines into the below table.
|Self-Assessment Tax year ended 5th April 2021||Deadline|
|Register for Self-Assessment||5 October 2021|
|Paper Tax Return Submission||Midnight 31st October 2021|
|Online Tax Return Submission||Midnight 31st January 2022|
|Pay the Tax you Owe||Midnight 31st January 2022|
If you are late submitting your tax return or paying any additional tax, you may be charged a penalty and interest on any overdue amounts.
What to include in a tax return?
To complete your tax return, it is necessary to declare all of your income received, (taxed or otherwise) any expenses or allowances available between the period 6th April 2020 and 5th April 2021.
If you are a sole trader:- You’ll need to include details of your total income and a breakdown of any business related expenses you have incurred during the year. Any profit generated, after your personal allowance is taken off, will be taxed plus class 4 National Insurance charged.
If you are a director or a higher rate tax payer:- If you received a salary, and are required to submit a tax return, you will need to include details of the salary received and tax deducted. These details can be found on the P60 from your employer. You will also need to include any P11d figures, if you have recevied any taxable benefits from your employer.
Furthermore, if you are a company director, you will need to declare any dividends paid paid to yourself from your company.
Don’t forget:- You will need to declare all sources of income on your self-assessment tax return – not just your main source.
For example, if you’ve received other dividend payments, income from other investments, or income from assets, such as a rental property, this will need to be detailed too, as will any pension contributions, state benefits and capital gains (such as a property you’ve inherited), lump sums such as redundancy payments and any foreign income received.
How your personal allowance affects your tax return?
The amount of income tax (and class 4 National Insurance) is generally based upon the income you have earned, less your personal allowance, if you have one (current allowance is £12,500) and after any tax already paid is deducted.
The amount of tax you pay is detailed below.
|Tax Rate (Band)||Taxable Income||Tax Rate|
|Personal Allowance||Up to £12,500||0%|
|Basic Rate||£12,500 to £37,500||20%|
|Higher Rate||£37,500 to £150,000||40%|
|Additional Rate||Over £150,000||45%|
- Tax rates are different for residents of Scotland.
- Dividends are taxed at 7.5% up to the higher rate threshold, then 32.5%.
How we can help?
We appreciate completing your tax return can be confusing and complicated, so we can help you at each stage. Using our services, we can register you for self-assessment and prepare and submit your tax return on your behalf.
This ensures everything is done correctly and makes life easier for you. All you have to do is pay your tax bill using the verification HMRC sends when they confirm receipt of your tax return.
For more information or help with preparing your tax return, please get in touch.