Newly Self Employed? Register For Self Assessment ASAP

If you’ve recently ventured into the exciting and rewarding world of self employment, you may not be aware that the deadline to register for your first Self Assessment is looming.

But fear not; we’re here with all the information you’ll need to guide you through the process easily and efficiently.

 

New To Self Employment? Have You Registered For Self Assessment?

 Self Assessment is a tool used by HMRC to work out and collect your Income Tax and National Insurance. If you’ve previously been employed, you’ll no doubt remember that these were automatically deducted from your wage, but when you’re self employed, it’s your responsibility to pay them yourself using Self Assessment.

If you’re newly self employed, you most likely won’t have submitted a Self Assessment before. If this is the case, and you earned more than £1,000 between 6^th April 2020 and 5^th April 2021, you need to register. (Note: there are various other instances where individuals are required to register and file a tax return. As a general rule, anyone whose income isn’t taxed at the source is required to complete one. Check if you need to complete a Self Assessment.)

Once registered, you’ll need to complete your tax return by 31^st October 2021 for paper copies or 31^st January 2022 for online submissions. Your tax bill will be calculated from your income, along with any allowances, benefits etc. You’ll need to keep hold of all of your receipts, expenses and invoices in order to file your tax return correctly. Once filed, HMRC will notify you of your outstanding tax and National Insurance which you will then be required to pay before 31^st January 2022.

 

Register By 5th October 2021

The Self Assessment registration deadline is Tuesday 5^th October so time really is ticking! Make sure you act fast to avoid any penalties further down the line – register for your Self Assessment now. You’ll be asked to set up a Government Gateway account which is quick and easy to do. You’ll need the following information to complete your registration:

• Address details
• Date of birth
• National Insurance number
• Contact details
• Name of your business
• Date that your business started

HMRC will then send you your Unique Taxpayer Reference (UTR) number and an activation code to activate your account. Keep your UTR number safe as you’ll need this to file your Self Assessment tax return.

 

What Happens If You Miss The Deadline?

 If you miss the registration deadline, you run the risk of not being able to complete your Self Assessment in time and subsequently being hit with substantial penalty fees. It can take up to 10 days for your UTR and activation code to arrive by post (which you’ll need before you can start your tax return), and the Self Assessment process itself can be quite lengthy so it’s vital you register before the deadline.

If you miss the deadline for filing your Self Assessment, you’ll immediately receive a penalty of £100 which will continue to increase the longer your tax return is overdue. In addition, you’ll also be charged interest if your payment is late so it can escalate very quickly! Find out more about the Self Assessment penalties.

If you know you’re going to be late, it’s important that you notify HMRC as early as possible as you may be able to come to an agreement (if you have a reasonable excuse!).

 

Looking For New Business Accounting Help?

The easiest way to avoid the stress and worry of completing your Self Assessment on time, correctly and without penalties is to leave it to the experts! At Warr & Co, this is what we do best. We complete a huge number of tax returns for a wide variety of businesses each year, so let us do the hard work for you. We may even advise you on ways to reduce your tax liability too.

So if you’re newly self employed, why not contact one of our accountants for a free, no-obligation consultation? Simply gather up your relevant documents, fill out the form below and let us do the rest.

Please be aware that this service is very popular and availability is limited so don’t leave it too late to get in touch. We look forward to helping you make your first Self Assessment tax return a breeze!