End of the Tax Year - Deadlines and Changes
Updated: May 8, 2019
Original article published in The Bay Magazine Swansea (April 2019)
As the 5 April 2019 quickly approaches it is a good time to start thinking ahead to your self assessment tax return. We really 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.
What are the deadlines?
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 is the deadline for making your second ‘payment on account’ installment 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.
Making Tax Digital
HMRC’s vision to digitalise the UK tax system is well underway. The transformation will start with Making Tax Digital (MTD) for VAT from April 2019. After MTD for VAT has been implemented, MTD for income tax (for the self-employed and those with income from property) and MTD for corporation tax are expected to follow, but not before April 2020 at the earliest.
The essential elements of MTD are:
Businesses and organisations (which includes those with income from property) will be required to maintain digital accounting records. Maintaining paper records will cease to meet the legal requirements in tax legislation.
Businesses and organisations will be required to use a functional compatible software product to submit their returns to HMRC. The software will use HMRC’s API (Application Program Interfaces) platform to submit information to HMRC. The current HMRC online tax return services will be withdrawn for those within the scope of the MTD rules.
Things to consider…
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.
It is essential to start considering digitalising your business. If you want to discuss moving onto a suitable accounting software, we can help with the transition/set up and training.
For any advice about any of the above, feel free to get in touch!
Allchurch & Co, Chartered Accountants