The countdown to complete your tax return online is looming. The deadline to submit and pay the tax you owe for the financial year 2022/2023 is 11:59pm on Wednesday 31st January 2024. Read on for more information.
Self Assessment Overview
The self assessment process is used by HM Revenue and Customs to collect Income Tax for people with businesses or other income which isn’t taxed through PAYE deductions
File Early
Although the deadline is the 31st January, you can submit earlier. This allows you to calculate what you owe and work out how to pay before the deadline. We would advise that you submit your tax return as soon as possible.
Provisional Figures
If you do not know what your profit is likely to be, then you should work out an estimate of what it’s likely to be – called provisional figures. You must tell HMRC when you submit your return that you are using provisional figures.
This applies to you if:
- your ‘accounting period’ ends at a different time to the end of the tax year
- your ‘accounting period’ is different to your ‘basis period’
- you’re waiting for a valuation
Once you have found out what your profit is for the whole tax year, you’ll need to change your return – which you can do within 12 months. If you pay more tax than you estimated, you will also be required to pay interest on the difference between your estimates and final figures.
Flexible Payment
HMRC has set up an affordable way for you to pay what you owe, if you are unable to pay in full. If you owe less than £30,000, you may be eligible to set up Time to Pay. These payment plans allow you to spread the cost of your tax return, however this is only available within 60 days of the payment deadline.
You can set up Time to Pay online.
Incorrect Data
If you become aware that you have inputted incorrect data, don’t panic. You have up to 12 months after the 31st January 2024 to amend your return – however if possible make sure that your return submission is correct in the first place!
Fines For Late Payment
If you submit or pay late, you will be charged interest from 1st February and a £100 penalty by HMRC. Even if you do not have tax to pay, you will still be penalised for not submitting your return.
If you have payment on account, you will also need to pay this instalment.
Need Help With Your Tax Return?
If you need help doing your filing or paying your tax return, please contact us now. James & Uzzell are specialist accountants in Swansea that can support your business with tax and help you take control of your business finances.