Help, I haven’t completed my self assessment tax return yet!
When do I need to complete my self assessment tax return 2022-2023?
What were the tax rates for the year to 5 April 2023? What were the NIC rates for the year to 5 April 2023?
What does payments on account mean? Do I need to pay payments on account? When do I need to pay payments on account?
What are supplementary pages? Do I need to complete the supplementary pages?
Is there a deadline for me to pay my tax bill? What if I can’t afford to pay my tax bill?
Can I pay through my employment or pension tax code?
We are fast approaching the 2022/23 tax return deadline of 31 January 2024.
Have you completed your self assessment tax return yet?
If the answer is yes, then you have my permission to do a little dance of joy! Although it still might be worth reading this blog post. In here I will explain a lot about your self assessment tax return, so you can check you haven’t missed anything.
If the answer is no, (slapped wrists for you!) you should definitely read on, as I know self-assessment tax returns can seem very daunting! I will try and simplify it all as much as I can for you. Breaking it down into manageable steps. While it might seem scary, try not to panic, and if you’re really stuck, you can always get in touch.
So let’s take a deep breath and tackle some of the questions that might come up when filing your self-assessment tax return.
What were the tax rates for the year to 5 April 2023?
- Tax rates for a personal allowance – which is the amount you can earn before being liable for income tax was £12,570
- Basic rate band of 20% income tax is on earnings of £12,571 – £50,270
- Higher rate band of 40% income tax is on earnings of £50,271 – £125,140
- Additional rate band of 45% is earnings over £125, 141
If your income is over £100,000 your personal allowance goes down by £1 for every £2 that your adjusted net income is above this amount. This means your allowance is zero if your income is £125,140 or above
What were the NIC (National Insurance Contribution) rates for the year to 5 April 2022?
- Class 1 is payable on employment earnings but this is not applicable to self employment.
Self employed taxpayers often don’t realise that they also have to pay Class 2 NIC £3.15 per week in 2022/23 and also Class 4 NIC which is 9.73% on profits between £11908 – £50270 and then 2.73% above this amount.
- Both Class 2 and Class 4 NIC are payable with any income tax due by 31 January 2024.
- Class 4 NIC is also added to the income tax liability when calculating payments on account but Class 2 isn’t.
I’ve been asked for payments on account, what does this mean?
If you are liable for more than £1,000 tax you will have to make payments on account in both the January and July following the tax year for which you have prepared a return. (i.e. January and July 2024) These payments will be 50% each time. Then when you prepare your next tax return, the liability will be reduced by these payments on account and you will have either a balancing payment to make (if your income is higher) or a repayment to claim.
However, again if your liability for that year is more than £1,000 you will need to make payments on account again. The first year you fall into this category is often a shock having to pay upfront, so if you’ve never made payments on account before, make sure that you budget throughout the year to compensate. It’s always good to be prepared.
If you think your profits have fallen in the current tax year you can reduce your payments on account accordingly by making a claim on your tax return
When do I need the supplementary pages on the self assessment tax return?
If you have other income such as PAYE income as an employee or if you made a Capital gain or loss in the year there are additional sections of the return you will need to complete.
Make sure you include each self employment you have separately; they cannot be added together.
Other information worth remembering about completing your self assessment tax return…
Do you know what your government gateway login and password is?
You need your government gateway login and password, plus your Unique Tax Reference (UTR) to complete your Self-Assessment Tax return online. Ensure that you know what these details are as it can take up to 10 working days for a new code to arrive through the post.
My tax is higher than I expected it to be, what should I do if I can’t afford to pay it?
If you are struggling to pay your tax bill by 31 January 2024 you can contact HMRC and may possibly be able to arrange a payment plan. Please note, there will be interest added to any amounts still outstanding from 1 February 2024. It is important to speak to HMRC as soon as possible.
If I have employment/pension earnings could my tax be collected through my tax code?
If you have other PAYE earnings such as a pension (this doesn’t apply to state pension) or employment income, you can have any tax you owe for the year to 5 April 2023 collected through your PAYE code for 2024/25.
However your tax return must be submitted by 30 December (and this is not a typo it is the 30th not the 31st).
Sonya is the sole Director of Jolly Accountancy Services.
She qualified as a chartered certified accountant in 2000 and has over 20 years of general practice experience.
She generally works with small owner-managed businesses and individuals and her approach allows her to develop lasting relationships with clients, providing them with all their accountancy and taxation needs and requirements.
You may not think you can afford such a service but it is easily affordable when this means that you can use your time more effectively to do what you do best and let her concentrate on the financial and administrative side.
When Sonya isn’t working, she is spending quality time with her two daughters.
To get in touch with Sonya click here.
