When Is The Self Assessment Tax Deadline?

For most people – and this is especially true of freelancers, business owners and individuals who receive additional income on top of their salary – getting your self assessment tax return submitted is an important task that needs to be completed as soon as possible. 

But with several important dates to bear in mind, it’s necessary to understand when your self assessment tax return is due and how to avoid penalties. We’ll walk through the new tax year’s important dates, what happens if you miss the deadline, and how to file your return effectively.

The Key Dates for the New Tax Year

As a UK taxpayer, it’s crucial to familiarise yourself with key deadlines in the tax year. So here’s a rundown of the important dates you’ll want to mark down:

6th April

The new tax year starts on 6th April, which means the commencement of your financial year under self assessment. This means you need to start a detailed record of all your income and expenses from this date so that when the time comes, you will file all required returns accurately. 

If you’re self-employed or have other income sources, this is when you want to start gathering your records to prevent a last-minute scramble.

31st July

Any second payment on account for your self assessment tax return is due by 31st July. The IRS considers this payment as partial payment of your estimated tax bill for the current year, which amortises your tax liability over time. These must be paid by the due date to avoid penalties. 

You will need to keep an eye on these dates if your payments on account are based on previous tax bills to ensure that you are paying the correct amount.

5th October

Post October 5th, if you are not already in the self-assessment system, you will no longer be able to register. This is the deadline by which you must tell HMRC if you need to file a self assessment tax return for the first time. Penalties are involved if you do not register by 5th October. If you register early, you will also be able to receive your Unique Taxpayer Reference (UTR) number in good time.

31st October

The date for the submission of a tax return if you’re filing self assessment tax on paper is the 31st of October. This is an earlier due date than the online submission deadline, so do plan ahead if you prefer to file a paper return. Bear in mind, though, that paper returns take longer to process, which could lead to a delay in receiving any tax refund.

31st January

The last deadline and the clearest is January 31st. This is the cut-off point for filing your self assessment tax return online and paying any tax owed from the previous tax year. You do not want to miss this date, or you could incur penalties, so you want to make sure you meet this date. But if you’re concerned about being able to pay your tax bill in its entirety by this date, there are available payment options to help you spread the costs.

What Happens If You Miss the Self Assessment Tax Deadline?

Missing the self assessment tax deadline can lead to several penalties and consequences:

• Late Filing Penalty: If you do not file your tax return on time, you will incur an automatic penalty of £100. This penalty can apply even if you owe no tax, or you’re entitled to a refund.

• Additional Penalties: You will be fined £10 a day for the next three months — to a maximum of £900 — for every day you put off filing. This is intended to incentivise taxpayers to submit their returns in a timely manner.

• Late Payment Penalty: If you fail to pay the tax you owe by the 31st January, you will incur a penalty of 5% of the unpaid tax. After 6 months, you can make an additional investment of 5%, and then after another 6 months (or 12 months) you can invest another 5% on top. (Note that you’ll also pay interest on any unpaid tax, which is why you should pay your bill as soon as you can to avoid additional charges.)

Filing and paying on time is important to avoid these increasing fees. If you miss the deadline, do what it takes to minimise penalties as soon as possible, such as requesting a payment plan if you’re unable to pay.

Who Needs to File a Self Assessment Tax Return?

Not everyone needs to file a self assessment tax return, but if you fall into any of the following categories, you must file one:

• Self-Employed Individuals: Sole traders, freelancers, and the like must file a self assessment tax return to declare your income and remit your tax.

• Partners in a Partnership: On the other hand, if you’re a partner in a partnership, every partner needs to file a self assessment return to declare their share of the income from the partnership.

• Directors of Companies: if you are a company director and earn income other than salary, pensions, or dividends, you may need to file a self assessment.

• Individuals with Additional Income: If you also earn income through property or savings, investment, etc., you might also need to fill out a self assessment tax return. This covers rent, dividends and interest from savings.

• Individuals with Significant Capital Gains: If you’ve had major capital gains, for instance from selling an asset such as property or investments, this will need to be reported on your self assessment return

• Other Specific Cases: You may have to submit in other cases, for example, if you have rent income from abroad or wish to claim tax relief.

If you’re in any doubt as to whether you need to file, it’s sensible to check with HMRC or speak to a tax expert. Incorrectly filing can incur penalties, so you should make sure you fulfill the requirements.

How to File Your Self Assessment Tax Return

Filing your self assessment tax return doesn’t have to be complicated. Here are the basic steps to follow:

1. Register with HMRC (if necessary): If you are new to filling out a return, you will need to register with HMRC to get your Unique Taxpayer Reference (UTR) number. Your UTR can take a professional couple of weeks to obtain, so it is best not to leave this detail too last-minute.

2. Gather Your Documents: Bring together all financial materials such as income records, expense receipts, and bank statements. This is important for making sure your return is correct.

3. Fill Out Your Tax Return: You can file your return online using HMRC’s online portal or, if you prefer, submit a paper return. Make sure that, when you complete your information, that the prompts are about your income, expenses and other requirements. Just be cautious not to rush this process so that you do not make any errors.

4. Review Your Return: Take a moment to review all the information you’ve entered before submitting to make sure everything is accurate. Wrong returns can slow processing or result in penalties.

5. Submit the Return: Fill out and sign your tax return. If you are filing online, make sure to submit it no later than January 31. Make sure to submit well before the deadline in case of any last-minute errors..

6. Pay Any Tax Due: Once you submit your tax return, HMRC will work out how much tax you need to pay. Settle any amount so far that is owed by said deadline. You can settle payments online or by other means such as bank transfer, etc.