January Tax Deadline

A Self-Employed Guide to the January Tax Deadline

It’s that time of year again! The self-assessment deadline is just around the corner – are you ready for the 31^st of January?

For those who are self-employed, completing and filing your self-assessment tax return (SATR) by the 31^st of January is vital to ensure compliance with HMRC reporting requirements and to avoid late filing penalties.

Whether it is you’re first time submitting a return to HMRC, or, you have been operating as self-employed for a considerable time, this blog will provide practical insights to make January less taxing.

Do I Need to File a Self-Assessment return?

So, who needs to file a self-assessment tax return? According to HMRC’s guidance, you’ll need to submit a return if any of the following apply to you:

• You’re self-employed: If you’ve been working as a sole trader and earned more than £1,000 (that’s before deducting any expenses or claiming tax relief), you need to file. Even if you’re just starting out, this threshold applies to most self-employed individuals.
• You’re part of a partnership: Business partners also need to report their income and ensure everything is settled with HMRC.
• You’re a high earner: If your total taxable income is over £150,000, you’re required to file a return.
• You sold something valuable: If you had to pay Capital Gains Tax on the sale or disposal of something that increased in value (like a property, shares, or other investments), this applies to you.
• You were hit by the High-Income Child Benefit Charge: If you or your partner claimed Child Benefit and either of you earned over £50,000, this charge might mean you need to file.

Do I Need to Report Untaxed Income?

Yes! Even if none of the above applies, you might still need to send in a tax return if you’ve got untaxed income. This could include:

• Rental income: If you’re making money from letting out a property.
• Tips and commission: For example, if you work in hospitality or sales and earn extra income that hasn’t been taxed.
• Savings, investments, and dividends: If you’re earning enough from these sources to owe tax, you are required to report this to HMRC.
• Foreign income: Any earnings from overseas could mean you’re required to declare it, even if you’re not bringing it into the UK.
• Crypto gains: Any earnings from your crypto currencies are also required to be reported.

If you’re unsure whether any of these apply to you, it’s worth double-checking with HMRC or a trusted accountant.

What Information Do I Need to Start My Tax Return? 

When you’re ready to start your tax return, make sure you’ve got all the essentials handy. You’ll need your Unique Taxpayer Reference (UTR) and National Insurance number, along with details of your income, earnings, and any other relevant financial records. You can view HMRCs guidance on what records you are required to keep for completing your return here.

Do I Need to File a Tax Return for my ‘Side Hustle’ Activities?

Last year, HMRC implemented new rules to help identify any cases of tax evasion and non-compliance on trading activity, often referred to as a “side hustle”. HMRC now requires businesses like Depop, eBay, Etsy, Vinted, and Airbnb to share and report sales details.

If an individual is making sales of over £1000 through their collective side hustling activities, they are required to notify HMRC by filing a self-assessment tax return. 

For more information on the new rules and what constitutes as trading, please see our original blog here.

When Is the Deadline to File My Tax Return to HMRC?

The deadline for submitting your online tax return to HMRC for the 2023/2024 (06^th April 2023 to 05^th April 2024) tax year is 11:59 pm on Friday, 31^st January.

This is a hard deadline, meaning any delay could result in late filing penalties. If you haven’t already started, now’s the time to gather your documents and organise your records. Whether you’re self-employed, earning untaxed income, or meet any other criteria requiring a return, submitting on time is crucial to avoid unnecessary stress and fines.

Need help Filing your Return? Seek Professional Advice Now

Still unsure about your filing requirements ahead of the January tax deadline? We’re here to help! Our expert team can guide you through the process, answer your questions, and ensure you’re fully compliant with HMRC regulations.