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With how quickly each day and month seem to slip past (and it seems to get quicker each year!), it's easy for important dates to slip under the radar, especially when it comes to something you'd rather forget... like tax.
The October Self-Assessment registration deadline is very quickly approaching, but I am here as your Fairy Tax Mother to remind you to get yourself registered before the deadline (and before incurring any potential fines!).
What Is the October 5th Self-Assessment Registration Deadline?
First things first, let's clarify what this deadline entails. The October 5th Self-Assessment registration deadline is for individuals who need to register for self-assessment with HM Revenue & Customs (HMRC) for the first time.
If you received income that requires a self-assessment within a tax year (6th April to 5th April), you must register with HMRC by the 5th of October following the end of that tax year.
Not everyone needs to register for self-assessment. However, if any of the following applies to you, it's time to get registered:
- Self-employed individuals: If you started working for yourself, whether as a freelancer, contractor, or sole trader, you must register.
- Landlords: If you earn rental income, self-assessment is required to declare this income.
- Investors: If you earned dividends or capital gains above a certain threshold, you'll need to report these earnings.
- High-income earners: If you make over £100,000 per year, self-assessment is required.
- Child Benefit Tax Charge: If you or your partner receives child benefit and your income is over the threshold for child benefit, you must register for self-assessment to pay the charge.
- Employees with additional untaxed income: This can include side jobs, tips, or income from abroad.
Even if you are employed and receive a salary that is taxed at source (through PAYE), you may still need to register if you have additional income streams or fall into any of the categories above.
Why Is It Important?
You might be wondering, why is this deadline so important, when you know January 31st is the BIG deadline everyone talks about?
The biggest reason is because HMRC requires it and if you fail to meet this deadline, you could end up with a fine from HMRC.
On tops of that, registering for self-assessment by the October deadline is essential to ensure HMRC issues a notice to file a tax return so you can file it on time and avoid any penalties or fines for late filing and payment. By registering before this deadline, you guarantee that you'll have ample time for HMRC to send the details (like your UTR) and for you to gather all the necessary documents and information required for your tax return submission deadline in January.
How to Prepare for the Deadline
Check Your Eligibility: Confirm whether you need to register for self-assessment based on your employment status and income sources.
Gather Documents: You will need your national insurance number, details of income sources for the tax year (e.g. business start date) and your unique taxpayer reference (UTR, if you've had one previously). It is also a good time to start collecting all relevant financial documents, receipts, and income records to streamline the tax return process once registered.
Register For Self-Assessment: Check the HMRC website for the latest information on registering for self-assessment for your income source(s), as some sources require registering a specific way.
Seek Professional Advice: If you're unsure about any aspect of self-assessment or tax obligations, consider consulting with a tax professional (like me!) to guide you through the process.
Don't Miss It!
In conclusion, the October 5th self-assessment registration deadline is one of the most important dates in the tax calendar for those filing for the first time. Missing this deadline can result in penalties and create unnecessary stress. By understanding who needs to register, how to register, and the key deadlines, you can stay ahead and ensure that you remain compliant with HMRC.
Remember, filing your taxes doesn’t have to be a last-minute scramble. With some planning and organisation, you can breeze through the process and focus on growing your business or managing your investments with peace of mind.
Have you got everything in order for the Self-Assessment registration? If you haven’t already, be sure to register before October 5th, and good luck with your first self-assessment! You can also engage someone like me to help you file if tax isn't your thing.
TL:DR: Register for self-assessment by 5th of October if you have new sources of untaxed income and don't already complete a self-assessment.
PLEASE NOTE: All details are correct at the time of writing this blog, but as tax is an ever-changing area, be sure to check the HMRC website for up-to-date facts and allowances.
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