January is when the focus of most contractors tends to be getting back into work mode. Sometimes, it's on a continuing assignment, which can often mean there are project deadlines to catch up on or meet. Other times, it can mean the start of a new assignment where you're settling in, finding your feet and learning the ropes.
However, the desire to get productive or back into routine can distract from other important tasks. One of which is filing your self-assessment tax return. The deadline for your 2023/24 tax return is the 31st of January, and at this time of year, many contractors still haven't completed their tax returns yet.
Time is your best friend when submitting your self-assessment tax return
The deadline for submitting your self-assessment tax return for the 2023-2024 tax year is midnight on the 31st of January 2025. With a couple of weeks to go, there is plenty of time to complete your return and submit it before the deadline.
However, if you have never completed a self-assessment tax return, you must register with HMRC and receive a Unique Taxpayer Reference (UTR) number. Unfortunately, this application can take weeks, so it's best to immediately phone HMRC and inform them of your situation.
Starting the process of completing your tax return now gives you ample time to ensure you have all the information you need to complete it accurately and on time.
Beat the self-assessment tax return deadline, beat the penalties
Unfortunately, for those who miss the 31st of January deadline, there is an immediate £100 fine for late submission. This penalty increases further after three months and is accompanied by late payment fines for any taxes due but unpaid, along with interest charges.
These fines and penalties can quickly rack up the longer you leave it to submit your tax return.
If in doubt, seek expert help
Finally, filing your tax returns can be a complicated subject and process.
So, if you're unsure what you should or shouldn't be declaring, it's best to seek professional help. Getting your self-assessment tax return right the first time prevents a host of unwanted problems and can save you lots of time and money in the future.
At Champion, our team of experts is always on hand to help and advise on how to complete your self-assessment tax return. You can contact them now at 0161 703 2549 or by email at info@championcontractors.co.uk.