When you’re self-employed, keeping track of essential dates and deadlines can be challenging.
One crucial date to mark on your calendar is 5 October 2024, which is the deadline to register for Self-Assessment.
If you started working as a self-employed individual on or after 6 April 2023, and your income exceeds £1,000, you must register with HM Revenue & Customs (HMRC) by this date.
This registration informs HMRC that you will be submitting a tax return for the upcoming year. It’s a one-off requirement, so if you’ve already registered in the past, you won’t need to do it again.
It is wise to register as soon as possible as it can take HMRC a while to process the request, issue the tax reference number and set up the self-assessment record. Without the tax reference number you are unable to submit a tax return or pay the tax owed.
Remember, your first tax return will be due by 31 January 2025, so planning ahead will give you ample time to ensure you have the necessary funds to cover your tax bill.
What if you miss the registration deadline?
If you fail to register for self-assessment by the deadline, you might face a penalty. However, if you notify HMRC after 5 October but pay your Income Tax in full by the 31 January deadline, HMRC may reduce any late notification penalty to zero.
Additional considerations
Beyond self-employment, there are a number of other circumstances that may require you to register for self-assessment. You may need to submit a tax return if, in the last tax year:
- you were a partner in a business partnership
- you had a total taxable income of more than £150,000
- you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
- you had to pay the High Income Child Benefit Charge
- You have any untaxed income from property rentals, tips and commission, savings, investments and dividends, or if you have any untaxed foreign income
It is worth bearing in mind that if you have sold or disposed of property and reported it within 60 days, you may still need to register separately for Self-Assessment, even if you have already informed HMRC about the disposal.
You should keep thorough records of all your income and expenses. This will not only help with accurate tax return submissions but also mean that you are in a position to supply documentation if HMRC requests it.
You can complete your registration online through the HMRC website, which is generally quicker and more convenient than paper forms.
Tax rules and deadlines can change, so ensure you regularly check HMRC’s website or subscribe to updates to stay informed about any changes that might affect you.
If you are unsure about any aspect of the registration process or your tax obligations, get in touch with our team and we can support you.
