| Self
Assessment... |
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If
you are self-employed, it is your responsibility to provide accurate
information on your business income and expenditure each year.
To do this, you need to send the Inland Revenue a Self Assessment
tax return.
Each
year, you'll receive a tax return that is tailored to your circumstances.
You should get this in April. If you don't, ask your Tax Office
for one. You need to fill in your tax return with details of all
sources of taxable income, gains, relief's and allowances. The
tax return must be completed and submitted by 31 January to avoid
paying a penalty. We can assist with the completion of your
tax return and the tax calculation
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| Deadlines |
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Submission
of personal tax returns
The
return for 2001-2002 must be filed by 31 January 2003, except
in the following circumstances:
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Circumstances
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Filing
Date
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Taxpayer
wishes the inspector to calculate the tax liability or repayment:
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Return
issued by 31 July 2002
a
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30
September 2002
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Return
issued after 31 July 2002
a
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Two
months from date of issue
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Circumstances
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Filing
Date
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Taxpayer
making self assessment - return issued after 31 October
2002
a
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Three months from date of issue
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Circumstances
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Filing
Date
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Taxpayer
wishes underpayment (below £2,000) to be coded out
under 2003-2004 PAYE
a
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30 September 2002
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Income
Tax Payments - Normal due dates: 2001-2002
| First
interim payment |
31
January 2002
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| Second
interim payment |
31
July 2002
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| Final
balancing payment |
31
January 2003
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Note:
No interim payments are required for a year of assessment if the
tax paid by assessment for the preceding year was less than £500
or 20% of the total tax liability for that year.
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| Penalties |
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(correct
as at 6 April 2002)
Registering
as self employed
If
you have not registered within three months, starting from the
last day of the month in which you began self-employment, you
could be liable for a penalty of £100. You must register
by 30 April 2001 if you started in self-employment in January
2001 or earlier.
Personal
tax returns - Main penalty provisions: individuals
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Offence
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Penalty(1)(2)
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Late
return (TMA 1970, s.93) (3)(4)
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Short
delay
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£100
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Delay
of six months or more
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£100
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Delay
of 12 months or more
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Tax
Geared
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| On
application to the commissioners. |
Up
to £60 Per Day
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Offence
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Penalty(1)(2)
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Failure
to notify chargeability
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Tax
geared (TMA 1970, s. 7)
a
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Offence
|
Penalty(1)(2)
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Incorrect
return, accounts and claims
a
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Tax geared (TMA 1970, s. 95)
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Offence
|
Penalty(1)(2)
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Failure
to keep and retain tax records
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Up
to £3,000 per year of assessment (TMA 1970, s. 12B)
a
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Offence
|
Penalty(1)(2)
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False
statements to reduce interim payments
a
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Tax geared (TMA 1970, s. 59A)
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- Interest
is charged on penalties not paid when due. The due date is 30
days after the notice of determination of the penalty is issued.
-
A defence of 'reasonable excuse' may be available
- Late
return penalties are cumulative, e.g. for a return six or more
months late there are two £100 penalties.
- The
two fixed £100 penalties are reduced if the total tax
payable by assessment is less than the penalty which otherwise
would have been chargeable.
- The
lower daily rate applies when determination of the penalty was
made by the inspector, the higher when determination was made
by the commissioners.
Surcharges
arise as follows:
|
Tax
Overdue
|
Surcharge
|
| 28
Days |
5%
of Tax overdue
|
| 6
months |
further
5% of Tax overdue
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| Key
dates for Self Assessment |
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Filing
your tax return and paying the taxes you owe. Don't make things
harder - and more expensive - for yourself by missing the key
deadlines...
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Date
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Deadline
For
|
|
30
September 2002
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People
who want the Inland Revenue to calculate their tax to
submit their 2001-2002 tax return
People
who want Inland Revenue to collect their tax (below £2000)
through next year's PAYE code (if possible) to submit
their tax return
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Submitting
all tax returns and tax payments for tax year ending 5 April
2002, sent out by 31 October 2002.
A
£100 penalty will be imposed if you fail to submit
a return by this date
Interest
will be charged on payments not received by this date and
a 5% surcharge may be imposed on the tax bill.
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28 February 2003
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An
automatic 5% surcharge applied to payments due on 31 January
2003 but not paid
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6 April 2003
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Tax
returns (or notice to complete a tax return) sent out to
people who get a tax return each year
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31 July 2003
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Second
payment on account for tax year ended on 5 April 2003
for those people this applies to
A second automatic 5% surcharge applied to payments due
on 31 January 2003 but not paid
A second £100 penalty is imposed on people whose
return was due on 21 January 2003 but did not send it
in
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