Self Assessment – Time to get your tax affairs in order

As the summer holidays draw to a close and with a definite feel of Autumn in the air, it’s a clear reminder to all accountants that our busiest season is rapidly approaching. If you are within the Self Assessment system under which individuals are required to self-assess their tax liability in a tax return there are a few deadlines to consider.

Firstly, if you have not received a notice to file a tax return from HM Revenue and Customs (HMRC) for the 2018/19 tax year but have a tax liability to report then you must notify HMRC by 5^th October. A requirement to notify HMRC may have arisen because you started a business or received a new source of income. Alternatively you may have sold an asset that has realised a capital gain. The onus is on the taxpayer to notify HMRC and penalties may apply if you fail to do so.

If you chose to file a paper return with HMRC rather than filing online you have until 31st October to do so for the 2018/19 tax year. Any tax liability is not payable until the 31st January 2020. If this is how you submit your returns, then time is already starting to run short to get this to HMRC.

For the majority of people who file a tax return online, the filing deadline is 31 January 2020. This is the deadline that accountants work to as we file returns online, and is also the deadline for paying any tax liability for the 2018/19 tax year.

Many people put off gathering their records together until the Christmas break knowing that this is before the January deadline but this adds pressure on both them as individuals and us as accountants as we rush to get the returns prepared and filed with HMRC in time. Being last minute can also sometimes mean that surprise tax liabilities arise with little time left to gather the funds to pay HMRC.

Whether you complete your own tax return or use an accountant please get your records organised as soon as possible to file your tax return in good time. Apart from avoiding unnecessary penalties, it will be much less stressful and allow time to budget for your tax liabilities. Perhaps we can all then look forward to enjoying the Christmas season this year!