If you are self-employed, run a small business or earn from rental properties, it is important that you complete and submit a self-assessment tax return every year. This should be done before the deadline, or you will have to pay the relevant penalties. Read on to find out key dates regarding tax return deadlines and other pertinent facts, so that you will be completely aware of what is expected for this tax year. 

The UK tax year for individuals starts and ends in April. After which you have seven to 10 months to prepare your tax return. You fill in the relevant form in which you declare your income and capital gains for tax years. Through this form you can claim your tax allowances and reliefs and send the form to HMRC, which can be done via paper or online. 

 

The information provided by you is used to calculate your tax liability. If you submit your tax return, then it is to obtain a return on all your taxable income for the year and not just for the sources which the HMRC has information such as employment income. You can claim tax allowances or any reliefs you are eligible for. 

If you have UK sourced income that has not been taxed at source or taxed at the correct rate, then you maybe required to complete a tax return. The responsibility is on you, the taxpayer, to tell the HMRC if you need to complete a tax return. 

If during the last tax year, you were a sole trader or self-employed, and earned more than £1,000, prior to removing anything you can claim tax relief on then you need to need to submit a tax return. Other circumstances that make you eligible to tax return are if you are a partner in a business partnership, if you receive tips and commissions, earn money from renting out property, earn from savings, investments and dividends and if you have foreign income. Tax return is not usually necessary for incomes based on wages or pensions. 

 

Missing tax return deadlines will cause you to incur penalties, with a late-filing penalty of 5% of the tax due for each month or part month your return is late. Late payment fee is .5% of the unpaid balance for each month or part of a month the tax isn’t paid. The rate increases to 1% ten days after the IRS issues a final notice of intent to levy or seize property. 

 

Even if you cannot pay the tax you owe, it is important that you file your tax return on time to avoid the penalties mentioned above and of course it is even better if you pay your tax, when due. Be aware of the deadline for online submissions so that you can have everything ready in time. Paper tax return will have a different deadline. 

Currently, the below are the deadlines for tax returns. 

 

Self assessment registration – 5 October 

 

Income tax filing deadline (paper) – 31 October 

 

Income tax filing deadline (online) – 31 January 

 

Tax payment deadlines 

 

Income tax payment deadline – January 31st 

 

Class 2 National Insurance Contribution (NIC) payment deadline – 31 October 

 

If you’re self-employed, your second payments on Account is before 31 July. 

If you have overpaid taxes throughout the year, the government will pay back or refund the amount you overpaid at the end of the year. When you subtract your deductions from your yearly income, you get your adjusted gross income, which is your taxable income. See how much income tax you paid last year, from 6 April 2020 to 5 April 2021, then check your income tax payments for the current year, 6 April 2021 to 5 April 2022. If you are self-employed, you can use the HMRC self-employed ready reckoner to budget your tax bill, as you can get a tax refund if you overpay your estimated taxes. 

Seek help from a professional tax adviser and/or from HMRC, if you are not familiar with filing tax returns. Calculating income tax, capital gains tax and filing tax returns are all complex procedures if you are not familiar with the processes.