If you’re earning money outside of payroll and you’ve not been taxed on it yet, you’ll need to know everything about doing a self-assessment tax return.

A self-assessment tax return is something you’ll need to do every year if you’re self-employed or earning income but not being taxed on it. And, if you don’t submit a tax return and pay HMRC what you owe, there will be penalties waiting for you at the end of the line. 

So, to know everything you’ll need to get started with your self-assessment tax return, we’ve put together a quick FAQ:

What is a Self-Assessment Tax Return?

A self-assessment tax return is a document that you submit to HMRC to declare all the untaxed income you’ve earned throughout the tax year. These could be influencer payments, self-employed payments, partnership payments and more.

It’ll also state all the payments you’ve made in that tax year that can be classed as expenses. These include business premises costs, website costs, office equipment and more. They’re noted because they’ll increase your tax-free allowance and reduce the total you owe to HMRC.

Do I Need to Submit a Self-Assessment Tax Return?

It depends. Do you earn money or receive money that hasn’t been taxed? For example, creator fund payments from social media platforms like TikTok. If so, yes!

Do you only earn money from your employer paid through a payroll system where you are taxed at source? If so, then, no, you won’t have to complete a self-assessment tax return. 

That said, the line between yes and no gets a little more grey. You have to have earned more than £1000 in a tax year to be required to file a self-assessment tax return. So, even if you are making money outside of your regular job, if you’ve not reached the £1000 limit, you don’t have to declare your earnings.

When Is the Earliest I Can Submit My Tax Return?

It’s worth noting that the UK tax year runs from the 6th of April to the 5th of April the following year. It’s this tax year that’s used for self-assessment deadlines.

With that in mind, as the tax year ends on the 5th of April, the earliest you could submit a tax return is the 6th of April. However, you’ll need to prepare your accounts based on your books which can take at least a couple of days. 

We’d recommend getting an accountant to help ensure you’re not missing any numbers and you’re claiming as many expenses as you lawfully can!

When Is the Latest I Can Submit My Tax Return?

Tax return deadlines vary depending on how you intend to complete your tax return. 

For example, if you intend to submit by paper (mail), the deadline is midnight on 31st October. But if you’re happy to submit your tax return online, you have until midnight on the 31st of January.

It’s worth us making note that these deadlines may change in 2024 as the “Making Tax Digital” deadline approaches. With all your books and accounts being migrated to cloud accounting software, HMRC is asking everyone to submit 5 tax returns in the year; one for each quarter and a balancing return at the end!

What Happens if I Submit My Tax Return Late?

If you miss your submission deadline, HMRC will send you a penalty charge. If you pay within 3 months of the filing deadline, you’ll only be charged £100. After this date, the fee will increase and you’ll be charged interest on the tax that you owe. 

That said, if you have a reasonable excuse, HMRC will allow you to appeal the penalty charge.

How Do I submit My 2022 Self-Assessment Tax Return?

To submit your 2021/22 self-assessment tax return, you’ll need to have already registered with HMRC. The deadline for this is the 5th of October. 

After you’ve registered, you should reach out to an accountant. They’ll be able to guide you in the right direction and tell you about the information you need to keep on hand to file your return. They’ll also get you set up on cloud-based accounting software to ensure you’re ahead of the game when it comes to the “Making Tax Digital” deadline. 

Finally, when you’ve set up an account and handed everything over, your accountant can prepare your tax return on your behalf and submit it to HMRC. When they’ve done this, you should log into your Gov.uk tax account and pay your outstanding tax balance.

If you’d like to know more about the upcoming 2021/22 tax deadline, contact our team at Phillips & Co Accountants on 01244 220 062. We’ll guide you through everything there is to know about submitting your tax return on time and without penalty. We’ll also be able to give you tips on claiming expenses for the work you’ve done!