Each month Ali Redwood of Tax Assist Accountants in Portishead answers some of your business and accountancy related questions.
Q: I started my business in the summer, should I have completed a tax return this January?
A: No, you won’t need to complete a self-assessment tax return until 31st January 2019 as you started your business and were self-employed during the tax year 6th April 2017 to 5th April 2018.
You need to register for Self Assessment as soon as your business starts and no later than 5th October in your business’ second tax year to avoid fines.
Registration can be completed online with HM Revenue & Customs and once you have registered you will receive a 10-digit Unique Taxpayer Reference (UTR) and an activation code to enable you to access your online services.
Any tax due will also be payable by 31st January. If the tax due is above £1,000, ‘payments on account’ may also be due.
These are instalments towards next year’s tax bill and are in addition to paying this year’s tax bill. In your first year, payments on account can be an unexpected nasty surprise so make sure you put aside enough for your tax liability.
Please give us a call on 01275 390596 if you need any further information.