What You Need to Know as the Personal Tax Deadline Approaches
Keeping on top of tax is important not just for limited company directors but also anyone who has received untaxed income through other sources. From self-employed professionals to landlords, it is important to manage personal tax correctly.
January 31st is one of the most pivotal dates in the personal tax-year which we will share details about in this article. Keep reading to understand what tax obligations you may be accountable for and to understand how the Hysons team can eliminate any stress surrounding personal tax calculations.
Who Are the Personal Tax Deadlines Applicable For?
In the UK, more than 12 million people complete a self-assessment tax return each year. While many tend to get these completed in advance of the annual January deadline, for some people, the first month of the year is filled with accounting duties to ensure their taxes are fully compliant.
The January 31st personal tax deadline is applicable to the following people:
- Self-employed professionals
- Anyone who has gained untaxed income including capital gains, inheritance, and international income.
- Landlords who have received rent from a property (both short and long term)
- Anyone who has made more than £50,000 and who claims Child Benefit (either yourself or a partner)
- Anyone who has earnt more than £100,000 per tax year even from PAYE sources as this is a higher than average salary which HMRC like to check through for accuracy
- Anyone who HMRC has informed needs to complete a self-assessment tax return
What Are the Key Dates to Be Aware of When Managing Personal Tax?
January 31st is the annual deadline for the submission of online tax returns, balancing payment for the previous tax year (if applicable) and the first payment on account for the current tax year (for anyone who is still self-employed). For those choosing to file paper returns rather than online versions, the deadline is October 31st. If you are a non-resident or a trustee of a pension scheme you can file paper returns until the 31st of January.
Although these are the official dates to be mindful of, there are also some others we think everyone with personal tax obligations should make a note of.
The tax year ends on April 5th, meaning that taxes can be calculated anytime after this date. The earlier you complete the task, the more time you have to prepare. This is also important in using an accountant, as you may be met with longer lead times during busy periods. Understanding what your tax position is in advance of the payment date means you can get organised. Other benefits also include plenty of time for those who need to claim back overpayments or anyone who wants to request a payment plan.
How Can Hysons Help With Personal Tax Obligations?
The key to handling personal tax requirements the right way is being armed with knowledge.
In addition to taking notice of the advice shared in this blog, our team is also on hand to help anyone complete a self-assessment tax return. We also offer additional support, such as bookkeeping and advice for when it may be time to switch from a sole trader to a limited company.
For more insights in advance of the upcoming personal tax deadline, contact our team.