Self-Assessment – Important Tax Rates and Deadlines Explained

Clever Accounts

January 2022 Update

As in previous year, HMRC announced last week that the Self-Assessment late filing penalty for the 2020-21 returns will be extended to 28th February 2022. However, the deadline to file and pay your Self-Assessment tax remains 31st January 2022 and late payment interest will still apply. Here are some more details about the latest announcement: 👉🏻 If you cannot file your return by the end of January, this will not incur a late filing fine, as long as you do file your Self-Assessment tax return online and by the 28th February 2022. 👉🏻 Following the above, you will not be fined for not paying by the 31st January deadline, as long as you do pay your Self-Assessment tax payment in full, or set up a Time to Pay arrangement, by 1st April 2022. Please be aware that interest on a late Self-Assessment payment will be charged from 1st February, as usual, so it is still advisable to pay on time and by the 31st January deadline if possible.

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

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.

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

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.

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%

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