Self Assessment Tax: Key Deadlines and Penalties

Team Nomi

Sep 19, 2024
8 minutes read

Self-assessment tax returns can be challenging for many taxpayers, but being aware of the crucial deadlines and the hefty penalties for missing them can help make the process more manageable. If you’re curious about when to file your tax return and the implications of missing a deadline, you’re in the right place. This blog will outline the critical dates for self assessment, including registration deadlines, submission dates for both paper and online returns, and payment deadlines for any taxes owed. We will also cover the consequences of late submissions, such as penalties and interest charges.

By staying informed about these important aspects, you can reduce stress and ensure compliance with HMRC regulations. Whether you are an experienced taxpayer or new to self assessment, this guide will provide the essential information you need to effectively manage your tax responsibilities.

What is Self Assessment Tax?

Self assessment tax is a system used by HMRC (HM Revenue and Customs) to collect income tax from individuals who have income sources other than employment or pensions. If you are self employed, a partner in a business, or have other income such as rental properties or investment dividends, you will need to file a self assessment tax return each year.

The self assessment process involves calculating your total taxable income for the year, deducting any allowances or reliefs you are entitled to, and then paying the appropriate amount of income tax. This can be done either through the PAYE (Pay As You Earn) system, where tax is deducted from your income at source, or through direct payments to HMRC if you are self-employed or have other income sources.

By understanding the self-assessment process and the deadlines involved, you can ensure that you file your tax return on time and avoid any penalties or interest charges from HMRC.

Who is Eligible to Pay Self Assessment Tax?

If you have income from sources other than employment or pensions, you may need to pay self-assessment tax. This includes:

• Self employed individuals with an annual turnover of more than £1,000
• Partners in a business partnership
• Company directors
• People with annual income over £100,000
• People with income from renting out property
• People with income from investments, such as dividends or interest
• People with income from foreign sources
• People who have received income subject to Capital Gains Tax

If any of these apply to you, you will need to register for self-assessment and file a tax return each year, even if you have no tax to pay. It’s important to register on time to avoid penalties from HMRC.

Steps to Prepare for Self Assessment:

Preparing for self assessment can help ensure that you meet deadlines and accurately report your income. Here are key steps to follow:

1. Register with HMRC: If you are new to Self Assessment, you need to register with HMRC by October 5th following the end of the tax year in which you need to file. For example, for the tax year ending April 5, 2024, you must register by October 5, 2024. This will provide you with a Unique Taxpayer Reference (UTR) number.
2. Gather Financial Records: Collect all relevant financial documents, including income statements, bank statements, receipts for expenses, and any other records that reflect your earnings and expenditures.
3. Generate the SA100 Form: Complete the SA100 form, which is the main self assessment tax return. This form requires details about your income, expenses, and any tax reliefs you may qualify for.
4. Complete Supplementary Forms: Depending on your income sources, you may need to fill out supplementary forms (SA101 to SA109) for specific income types, such as property or dividends.
5. Record Tax Payments: Keep a record of any tax payments made throughout the year. This can reduce your overall tax liability and ensure accurate reporting.
6. Review Your Tax Return: Before submission, review all entries for accuracy. Check that all income and expenses are correctly reported and that you have included all necessary forms.
7. Validate Submission: Perform a test submission if possible to identify any errors before making the actual submission.
8. Submit to HMRC: Finally, submit your completed SA100 and any supplementary forms to HMRC by the deadline, either online or via post.

By following these steps, you can prepare effectively for your self assessment and avoid potential issues.

Deadlines for Self Assessment:

Meeting key deadlines for self-assessment is essential to avoid penalties and ensure compliance with HMRC. Here are the main dates you need to remember:

• Registering Deadline: You must register for self-assessment by 5th October 2024 if you are completing a tax return for the first time. This registration allows you to obtain your Unique Taxpayer Reference (UTR) number and activation code.
• Second Payment on Account Deadline: Self-employed individuals are required to make their second payment on account by 31st July 2024 for the 2023-24 tax year.
• Paper Tax Return Submission Deadline: If you are submitting a paper tax return, it must be filed by 31st October 2024 for the UK tax year 2023/24.
• Online Tax Return Filing Deadline: The deadline for filing your online tax return for the UK tax year 2023/24 is 31st January 2025.
• Balancing Payment and Online Filing Deadline: The deadline for the balancing payment, if tax is still owed after the initial payment on account for the 2023-24 tax year, is 31st January 2025. This date is also the deadline for filing online tax returns for the 2022-23 tax year.
• Payment Deadline: Any tax owed must be paid by 31st January 2025 in the UK. Late payments may result in penalties.

What will happen if you Miss Deadlines?

Missing deadlines for self-assessment can lead to several negative consequences. Here are the main repercussions:

1. Automatic Penalties: If you miss the deadline for submitting your tax return, you will incur an automatic penalty of £100, even if you do not owe any tax.
2. Additional Penalties: If your return is more than three months late, additional penalties apply. These can range from £10 per day for up to 90 days to a percentage of the tax owed.
3. Interest Charges: Late payments will attract interest charges on the unpaid tax. This interest accumulates daily, increasing the total amount you owe.
4. Increased Scrutiny: Failing to meet deadlines may raise red flags with HMRC, leading to increased scrutiny of your tax affairs and potential audits.
5. Difficulty in Future Registrations: Missing deadlines can affect your ability to register for self-assessment in the future or could complicate your tax situation.

To avoid these consequences, it’s essential to keep track of all relevant deadlines and submit your tax return and payments on time.

Immediate Penalties for Late Submission

If you miss the deadline for submitting your self-assessment tax return, you will face immediate penalties from HMRC. These penalties are as follows:

1. £100 Fixed Penalty: If your tax return is up to 3 months late, you will incur an automatic £100 penalty, even if you have no tax to pay.
2. Daily Penalties: If your tax return is more than 3 months late, you will be charged a penalty of £10 per day for up to 90 days, up to a maximum of £900.
3. Additional Penalties: If your tax return is more than 6 months late, you will be charged an additional penalty of either £300 or 5% of the tax due, whichever is higher.
4. Further Penalties: If your tax return is more than 12 months late, you will be charged another penalty of either £300 or 5% of the tax due, whichever is higher.
5. Six-Month Penalty: If your return is 6 months late, you will face an additional penalty of either £300 or 5% of the tax due, whichever amount is higher. This is in addition to any previous penalties incurred.
6. Twelve-Month Penalty: If your return is still not submitted after 12 months, another penalty of either £300 or 5% of the tax due will apply, again depending on which amount is greater.
7. Interest on Unpaid Tax: In addition to penalties, interest will accrue on any unpaid tax, increasing your overall liability. This interest is calculated daily, adding to the financial burden.
8. Potential Legal Action: Continued failure to file may lead to legal action from HMRC, including enforcement measures to recover owed taxes.

Filing your tax return as soon as possible can help you avoid additional penalties and interest charges. Even if you’re unable to pay the tax owed right away, submitting your return on time is crucial to minimise initial penalties. You can use a software to remind yourself the deadlines of self assessment.

Choosing the Right Software for Self Assessment Returns

Selecting the right software for your self assessment tax return can make the process easier and more efficient. Look for software that is user-friendly and specifically designed for self assessment. Nomi’s self assessment software is best one to consider for Self Assessment Returns as it has following features: 

• Automatic calculations
• The ability to import financial data
• Guidance on allowable expenses. 
• Compatible with HMRC’s requirements for electronic submissions. 

Choosing Nomi’s Self-Assessment software can help reduce errors, save time, and ensure that your tax return is completed accurately and submitted on time.

This software minimises your risk of penalties and ensures your self assessment tax procedures before deadlines. With Nomi, you can streamline tax compliance tasks efficiently. Experience the benefits firsthand with a free trial or you can also book a free demo to explore its features and functionalities. Self assessment software pricing is transparent and competitive, ensuring value for your investment. Simplify your tax filing process, enhance accuracy, and save time with Nomi’s user-friendly interface and dedicated support.