What is a self-assessment?

• A self-assessment, also known as a Tax Return, is the process of reporting your income to HMRC, the income of which HMRC is not aware of. The information included in the reporting relates to your income and to the expenses incurred while gaining that income. Following the reporting, your tax liability or tax rebate will be calculated along with any contributions to National Insurance. 

When should I submit the self-assessment?

• The self-assessment should be submitted electronically to HMRC within 9 months from the end of the tax year. 

What is a tax year, or financial year?

• A tax year is a period of 12 months which starts on the 6th of April current year and ends on the 5th of April the following year. For example: 2023-2024 tax year started on the 6th of April 2023, and will end on the 5th of April 2024. This is also known as the financial year ending 5th of April 2024. 

What happens if I do not submit the self-assessment on time?

• The normal deadline for the submission of the self-assessment is the first 31st of January after the end of tax year. If you are late, you will receive penalties from HMRC for late submission. They will start with £100 for being late up to 3 months, followed by £10 per day for the next 90 days, an additional £300 for being 6 months late, and so long. 

What information do you need to submit a Self Assessment?

• to be able to submit a Tax Return, you will need the following information, based on the type of income you received:

1. Income information:

• self-employment: sales invoices, bank statements, contractor statements, 

• self-employment CIS: CIS statements (Payment and deduction statement), bank statements

• employment (PAYE): payslips, P45 or P60

• rental income: bank statements, rental agreements

• dividends, bank interest: bank statements

• Capital Gains: purchase invoices, selling invoices, bank statements, section 104 holding (shares), shares statement

2. Allowable expenses:

• purchase invoices, receipts, bank statements

• mileage records (if you are using flat rates)

• other relevant information.