Tax deadline approaching for self employed
Self employed beauty therapists, nail techs and hairdressers are being reminded that they only have until 31st January to complete their Self Assessment tax return for the year 2017 to 2018.
HM Revenue & Customs has warned that more than 11.5 million 2017 to 2018 tax returns are due. Tax is automatically deducted from the majority of UK taxpayers' wages, pensions or savings. For people or businesses where tax is not automatically deducted, or when they may have earned additional untaxed income, they are required to complete a Self Assessment tax return each year.
Financial Secretary to the Treasury, Mel Stride, says:
“It is encouraging that around 52% of taxpayers have already completed their Self Assessment tax returns. With less than one month to go before the deadline, there are still many people that need to act now.”
How do you know if you need to complete a tax return?
You need to complete a Self Assessment Self-Assessment tax return if you:
- Are a self-employed sole trader, or
- Earned more than £2,500 from renting out property, or
- Received more than £2,500 in other untaxed income, for example from tips or commission, or
- Are an employee claiming expenses in excess of £2,500, or
- Have an annual income over £100,000, or
- Have a partner that received Child Benefit and either of you had an annual income of more than £50,000, or
- Earned income from abroad that you need to pay tax on
Angela MacDonald, HMRC's Director General for Customer Services, says:
“If you are completing Self Assessment for the first time or are yet to start your 2017 to 2018 tax return, there is a wide range of support and guidance available on GOV.UK to help at every stage of the tax return process.”
Help is also available from the Self Assessment phone helpline (0300 200 3310), and on social media.
If you fail to complete a Self Assessment tax return on time, penalties include:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- After 12 months, another 5% or £300 charge, whichever is greater
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.