What is a Self Assessment?
Self Assessment is a system HM Revenue and Customs ( HMRC ) uses to collect Income Tax. Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income (including COVID-19 grants and support payments) must report it in a tax return.
Self Assessments due on the 31st of January 2023 is relating to the latest tax year ( 6th of April 2021 to the 5th of April 2022).
What is the Earliest I can Submit My Self Assessment?
You could’ve submitted your completed self assessment as soon as the previous tax year ends i.e. 6 April 2022 if everything is up to date. However, if that is not the case and you have not completed your self-assessment yet, the following deadlines are important to know:
- Deadline for all self assessments – Midnight 31 January 2023
- Deadline for paying taxes you owe – Midnight 31 January 2023
There’s usually a second payment deadline of 31 July if you make advance payments towards your bill (known as ‘payments on account’).
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What is “Payments on Account”
‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
You have to make 2 payments on account every year unless:
Your last Self Assessment tax bill was less than £1,000
You paid more than 80% of the previous year’s tax you owed, for example through your tax code or because your bank had already deducted interest on your savings
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.
Failing to submit your self assessment on or before the 31st of January 2023 will result in penalties from the HMRC. Contact CIGMA Accounting to help you in your self assessment. We have two offices based in London (Farringdon and London respectively).
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