Registering for Self Assessment
As the 5 October 2019 approaches its important to tell HMRC if you need to complete a Self Assessment. We advise not leaving it until the last minute to ensure you have plenty of time to complete the tax return and time to ensure you have the tax owed set aside.
For untaxed income earned during the 18-19 tax year, the online deadline for filing your Self Assessment tax return and paying your bill is midnight 31 January 2020.
There are several other 2019 Self Assessment dates to bear in mind. It’s unlikely that all of them will be relevant to you, but understand which ones apply so that you don’t miss any important deadlines.
- 31 July 2019 was the deadline for making your second ‘payment on account’ instalment to HMRC. This will only apply to you if you were self-employed during the tax year 2017-18 and you owed tax of over £1,000 when you submitted your tax return for this period.
- 5 October 2019 is the deadline for telling HMRC that you’re self-employed so that they’re aware you need to complete a tax return next year. If you’re already registered as self-employed, there’s no need to do this again.
- 31 October 2019 is the Self Assessment deadline for the tax year 2018-19 if you want to file a paper return rather than filing online. However, most businesses find it easier to file their tax return online – and under the government’s Making Tax Digital plans, filing paper returns may not be an option from April 2020.
- 30 December 2019 is the deadline for filing your online tax return if you want the tax owed to be collected through PAYE via your tax code. This is only an option if you have some income that’s already taxed through PAYE (i.e. you’re employed as well as self-employed), and if your Self Assessment tax bill for 2018-19 is below £3,000.
If you need help deciding whether you need to submit a Self Assessment return, please don’t hesitate to get in touch with us to discuss. Missed deadlines or payments will result in penalties so please ensure you understand the deadlines and your responsibilities. If you need to change your return for whatever reason, then we can help with amended returns.
CONSIDERING DO YOU NEED TO SET UP A PAYROLL SCHEME
Besides delivering employees’ salaries, the payroll system is responsible for everything from monitoring holiday pay to statutory sick pay and bonuses. Each time you run the payroll, the government requires you to record employees’ National Insurance (NI) and tax and report it online under the Real Time Information (RTI) PAYE system.
Employing your first member of staff changes your legal rights and responsibilities. HMRC needs to be made aware when this happens, so you must let them know before the employees’ first payday. (There are exceptions so make sure you are familiar with these).
You must report details of gross pay, PAYE and NICs deducted, statutory pay (maternity, paternity, adoption, shared parental pay and statutory sick pay), pay dates and start and leave dates, if applicable. These details must be reported for every employee, and sent off every time they are paid, sent in the form of a Full Payment Submission (FPS).
If you want to discuss payroll further, please don’t hesitate to get in touch. You can perform this internally or this is something Allchurch & Co can help with.