The tax return process known as Self Assessment is part of the HMRC income tax system, which is used to collect tax on the income of individuals. The purpose of this system is to capture and in turn to tax income revived by individuals that is not taxed at source.
A self assessment tax return covers the period from 6 April to 5 April the following year. For example, the 2014-15 tax year started on 6 April 2014 and ended on 5 April 2015.
A self assessment tax return will need to be competed after 5 April and prior to the HMRC filling deadline.
There are in effect two deadlines depending on how you choose to file the return:
1. Midnight 31 October – Paper Returns
2. Midnight 31 January – Online Returns
Penalties for Late Returns
You will receive a penalty of £100 if your return is 1 day late.
If your return is more than 3 months late the fine will increase.
If the return has not been submitted within 3 months, an additional fine of £10 a day will apply up to a maximum of £900.
It is important to submit your return on time to avoid penalties and to make sure you’re paying the right amount of tax.