The deadline to register for an online self assessment tax return for 2018/19 falls this weekend on Saturday 5 October.
Last year, 700,000 taxpayers missed the self assessment deadline and faced penalties of up to £100 a day if they missed the online self assessment filing date of 31 January 2020.
Who needs to register?
- Individuals need to complete a self assessment tax return for 2018/19 if:
- they earned more than £2,500 from renting a property;
- their partner received child benefit and either of them had an annual income of more than £50,000;
- they received more than £2,500 in other untaxed income, for example from tips or commission;
- they are self-employed sole traders, limited company directors, shareholders, or employees claiming expenses in excess of £2,500; or
- they have an annual income over £100,000.
Registration can be completed on the HMRC website if not already registered or not previously filed online.
With the main focus of self assessment being the deadline of filing by the 31st January the registration deadline often gets over looked, it is important to remember that the registration process is not automated, instead relying on confirmation of an access code which can take up to 10 days to be sent out from HMRC.
The self assessment population includes anyone who is a shareholder, a limited company director or has an annual income in excess of £100,000. However, it also extends to those who have earned as little as £2,500 in either rental income or another form of untaxed income such as tips or commission and where a tax liability needs to be reported to HMRC.
The self assessment is also the designated tax filing system for parents who receive both child benefit and earn in excess of £50,000 per annum.
If a taxpayer fails to register in time and therefore is unable to file their self assessment return before the 31st January they may be subject to HMRC’s fines which vary depending on the length of the delay.