The 5 October deadline for registering for Self Assessment with HMRC is fast approaching. For individuals who have not yet submitted a tax return before, registering for Self Assessment is essential to avoid penalties and ensure compliance.
In this article, we explain the process of registering for Self Assessment, debunk common myths, and provide important tips to make the process easier.
Who Needs to Register for Self Assessment?
Many people incorrectly assume that if HMRC doesn’t contact them, they don’t need to register for Self Assessment. However, it is the individual’s responsibility to determine whether they are required to file a tax return. Here are some of the scenarios in which individuals need to register:
- If you are newly self-employed and have earned gross income of over £1,000 during the 2023-2024 tax year.
- If you are a landlord renting out property or part of your home and earning rental income.
- If you have received untaxed income over £2,500, for instance, from investments or side gigs.
- If you need to claim tax relief on pension contributions, charitable donations, or other eligible expenses.
“You must register for Self Assessment by 5 October 2024 if you have to send a tax return and you have not sent one before.”
The Self Assessment Process & Deadlines
- 31 October 2024: If you are submitting a paper return, HMRC must receive it by this date.
- 31 January 2025: This is the deadline for filing online returns and for paying any tax you owe for the 2023-2024 tax year.
Missing these deadlines can result in penalties, which increase the longer the delay. Therefore, it’s important to stay ahead of the schedule and file your tax returns promptly.
Common Myths About Self Assessment
There are several misconceptions surrounding Self Assessment registration and filing. Let’s dispel some of these myths:
“HMRC hasn’t contacted me, so I don’t need to register.”
False. HMRC doesn’t send out reminders to individuals. It’s your responsibility to check whether you need to file a tax return, especially if you are newly self-employed or have received untaxed income.
“I need to pay tax as soon as I file my return.”
No. Even if you submit your return early, the deadline for paying any tax owed is still 31 January 2025. You can also set up a payment plan through HMRC’s budget payment system to spread out your payments.
“I don’t owe any tax, so I don’t need to file.”
Not always. Even if you don’t owe tax, you may need to file a Self Assessment tax return to claim refunds or tax relief. For example, if you’re entitled to a tax refund due to overpaid income tax or pension contributions, you must file a return.
How to Register for Self Assessment
Registering for Self Assessment is a straightforward process:
Go to GOV.UK: Visit the GOV.UK Self Assessment registration page.
Create a Government Gateway Account: If you don’t already have one, you’ll need to set up a Government Gateway account.
Get a Unique Taxpayer Reference (UTR): Once registered, you’ll receive your UTR within 10 working days (or 21 days if you’re overseas). This is essential for completing your tax return.
Sign in to your tax account: Once registered, you can sign into your personal tax account and file your return.
If you’ve registered for Self Assessment before but didn’t file a return for the previous tax year, you may need to reactivate your account.
Penalties for Missing the Deadline
If you miss the 5 October deadline or fail to submit your tax return on time, penalties can accumulate. Late registration penalties are based on how late the registration is and how much tax was unpaid due to the delay. These penalties can quickly add up, so it’s critical to ensure you register and file on time.
How Can Glow Accounts Help?
At Glow Accounts, we specialise in helping businesses and individuals across the UK navigate the complexities of Self Assessment.
We can handle the registration process for you, provide ongoing tax advice, and ensure that your tax returns are filed correctly and on time. By working with us, you can focus on growing your business without worrying about tax compliance.
In Conclusion
With the 5 October deadline fast approaching, now is the time to register for Self Assessment if you haven’t already. Don’t wait for HMRC to remind you—take action now to avoid penalties and ensure a smooth tax filing process.
Whether you’re newly self-employed, renting property, or claiming tax relief, Glow Accounts is here to guide you every step of the way.
Contact us today to learn more about how we can assist with your Self Assessment and all your accounting needs.
Let Us Help You With Your Self Assessment & Allow You To Concentrate On What You Do Best
Navigating the Self Assessment process can be overwhelming, especially with important deadlines and tax rules to consider. At Glow Accounts, we specialise in simplifying this for individuals and businesses alike, ensuring you register on time, file your tax returns accurately, and avoid costly penalties.
Whether you’re new to Self Assessment or need support managing your tax affairs, our team of experienced accountants are here to guide you every step of the way.
Let us take the stress out of tax season so you can focus on what really matters—growing your business.
Contact us today to learn more about how we can simplify your Self Assessment and keep you ahead of your tax responsibilities or email us at info@glowaccounts.co.uk or call 01892 267 750.
