With the new year just around the corner and tax season fast-approaching, now’s a good time to get a head start on your self assessment tax return.
Self-assessment is a system HMRC uses to collect tax on income that wasn’t taxed at source. People who are selfemployed, such as sole traders, have to file a self-assessment return, along with partners in partnerships and landlords who receive rental income. Directors of limited companies who pay themselves a dividend may also need to file a return.
If you’re not sure whether you’re affected, you can check if you need to send a return on the Government website.
The deadline for completing your return for the 2021/22 tax year is 31 January 2023, and while HMRC gave taxpayers an extra month to get everything together and filed in 2022, it is unlikely this will be the case this year.
Any taxpayers who don’t file their return and pay any tax due by February 2023 will face penalties
and interest.
It’s a good idea to submit your return now to avoid incurring any extra costs. To help you get started, we’ve outlined some of the benefits of filing your return early below, along with some common mistakes and how to avoid them.
Rates, allowances and reliefs for Self-Assessment Tax Returns
From personal allowances to savings and dividend rates, we’ve broken down the key figures and thresholds for the current tax year, helping you make the most of what’s available and stay compliant with HMRC’s requirements.
Phase 2 of HMRC's 'Making Tax Digital' (MTD) Campaign is underway for Income Tax, bringing self-employed business owners and landlords into the digital tax regime.