If you haven’t registered for self assessment yet, here’s what you need to do.
The deadline for filing your Self Assessment tax return is 31 January (in all but a few cases), which means there’s still a few weeks left if you haven’t got yours in yet.
To file your tax return you need a UTR (Unique taxpayer Reference) which is issued by HMRC when you register with them.
But what if you haven’t registered for self assessment yet?
Will this mean the end of the road and an automatic penalty?
Well, not necessarily, but you’ll have to act fast!
Technically you’re supposed to inform HMRC within 6 months of the end of the tax year in which you start to receive untaxed income. So, if you received the income before 5th April 2018 you’re supposed to declare it by 5th October.
HMRC have it up their sleeve to issue a penalty if you miss the deadline, but in practice this is rare. What’s more, the online registration process is fairly straight forward and a UTR is generally issued in 1 – 2 weeks, meaning there’s still time to get it done if you haven’t registered for self assessment.
That would give you a couple of weeks to get your paperwork together, so if you start to get this done at the same time you should have everything ready for when the UTR arrives.
Registration is required for things such as self employment income of more than £1,000, rental income of more than £2,500, or had £10,000 of income from dividends or investments.
Remember, the sooner you act the better chance you have of a positive outcome.