Self-Assessment FAQs

In 30 seconds, what does this article cover?

These jargon-free FAQs will answer the most common (and often complex) questions… some have arisen from our clients, whilst others are things that we think would be rather helpful for you to know.

Who is responsible for completing the return?

That’s actually up to you. A large number of people use their accountant to complete this task as they want the peace of mind that it will be filled in correctly and on time. You can, however, choose to fill it in yourself, and your first step will be to register with HMRC to set up a Government Gateway account.

What are the important dates I need to remember?

For tax returns covering income received in the tax year 2023/2024:

• 5^th October 2024 – if it’s your first self-assessment you’ll need to ensure your registration is complete by this date.
• 31^st October 2024 – for paper tax returns only, this is the cut-off date.
• 31^st January 2025 – for online tax returns, this is the cut-off date.
• 31^st January 2025 – full payment of tax owed needs to be made by this date otherwise penalties and charges will apply.

What are the penalties if I’m late completing the return?

If you’re using a good accountant, you can be confident that this won’t happen. If you’re completing your own return and, for whatever reason, miss the completion deadline then penalties will apply – you could be charged a penalty fee and interest on late payments.

Firstly, there are penalties for sending your tax return late:

• If one day late, the penalty is £100.
• If you get to three months late, you may have to pay a penalty of £10 a day (capped at 90 days – £900).
• If you get to 6 months, you’ll have to pay a further penalty of 5% of the owed tax or £300 (whichever is greater).
• At 12 months, a further 5% or £300 (whichever is greater).

In addition to those penalties, there are also interest charges for paying your tax late:

• If you are 30 days late, you’ll have to pay 5% of the tax you owe at that date.
• At 6 months, you’ll have to pay a further 5%.
• At 12 months, another 5%.

Penalties can be appealed online, by post or by phone if you believe you have a reasonable excuse for sending or paying your return late.

How do I calculate my self-assessment bill?

If you’ve decided to complete the self-assessment yourself, rather than getting your accountant to do it, it can look a bit daunting at first glance but you just need to be sure to read all the accompanying information and notes to help you fill the right sections in correctly, with all the information that you need to hand to enable you to fill it in easily.

Ultimately, its HMRC that calculates how much tax you owe by adding together all of your taxable sources of income and then deducting any allowable expenses. When completing the form’s details to give HMRC this information, you’ll just need to fill out the sections that are relevant to you.

There is also a self-employed ‘ready reckoner’ which allows you to budget for your self-assessment tax bill so you won’t have any big surprises when the time comes to pay. You’ll find this here. You enter your estimated weekly or monthly profit to gauge an idea of how much Income Tax, Class 2 and Class 4 National Insurance you’ll pay.

Can I make any amends to my tax return once submitted?

Yes, you can correct a tax return within 12 months of the deadline. It might be that you can claim a refund based on that change. Equally, if the change is not in your favour, you must still let HMRC know as failing to correct an error may lead to a steep fine.

What happens if I can’t pay the amount owed?

The most important thing to do, as soon as you realise you can’t afford to pay, is to contact HMRC immediately. They will review the amount you owe, your income, expenditure, assets and savings and investments and then decide if you’ll be given more time to pay or the opportunity to pay in installments – either monthly or quarterly.

Never avoid the issue, HMRC are not going to forget that you owe them money and will take action to collect it (or assets) if you don’t contact them.

How do I pay my tax bill?

Once you’ve submitted your return, you’ll be told the amount of tax that you need to pay. The deadline for payment is always 31 January. It’s easy to make the payment, you can do it through your online bank account, by telephone, by CHAPS, online or at your bank or building society with a paying-in slip from HMRC. Whichever method you prefer, just make sure the money will have cleared by the deadline date.

Will I be affected by Making Tax Digital (MTD)?

That depends on how much your income is. Everyone will be affected at some point, it’s just a matter of when. Those with a turnover of more than £50,000 will have to use MTD compatible software from April 2026. Those with a turnover between £30,000 and £50,00 will have to use MTD from April 2027.

A short recap regarding MTD – it means that you will no longer use HMRC’s website to file your tax return. Instead you’ll keep, and submit digital records using MTD compatible software.

How can we help?

Here at Integro Accounting we like to keep things simple. We offer bespoke tailored accountancy packages covering all your personal and business tax needs, including:

• Unlimited access to a dedicated accountant
• Annual accounts
• Corporation tax return
• VAT returns
• Payroll submission
• Automatic enrolment pension filing
• CIS returns
• Submission of personal tax returns
• Registered office address
• Software licenses to suit
• Confirmation statement filing
• And much more

Full details can be found here or alternatively speak to one our fully qualified accountants on 0207 096 2659. We’d be delighted to talk to you about how we can help you manage your accounts in the most profitable and efficient way for you and your business.