January: the first month of year and sometimes the most depressing. So what better way to spend it than filling out your self-assessment forms? Ok, admittedly this isn’t the most fun past time, but the clock is most definitely ticking for contractors and freelance professionals to get their self-assessment forms sorted. Freelance professionals who have time between Java contract jobs may wish to take the matter into their own hands. If you are going it alone with self-assessment, here are a few useful tips:
Should you be completing a self-assessment?
If you are self-employed then YES. Contractors, freelance professionals and agency workers are all required to do so.
How do you go about it?
If you are opting for the online approach then you need to be registered, so get this out the way if you haven’t already. Once you are registered, HMRC can send you your UTR (Unique Taxpayer Reference) through the post. The cut-off date to register alone is January 21st, so get it out of the way now to avoid last minute stress!
Make sure you have everything you need before registering which will include the details of your company, National insurance number, your personal details and most importantly, your UTR sent from the HMRC.
What will happen if I miss the deadline?
Your self-assessment must be completed by Tuesday the 31ST of January (Midnight). Failing to do this you may be subjected to a ‘late filing penalty’ from the HMRC. If you don’t submit your form on time you will automatically receive a £100 penalty. If the form still is submitted after 3 months you will incur penalties of up to £10 a day.
To cut a long story short, it isn’t worth the hassle, so get it done now!