Tag: Self Assessment
Do I need to register as a sole trader with HMRC, and by when?
If your gross income from self-employment is more than £1,000 in a tax year, you must register for Self Assessment. The deadline to tell HMRC is 5 October after the tax year ends. Start trading in July 2026 and you register by 5 October 2027, then file your return and pay the tax by 31 January 2028. You can register as soon as you start trading, and most accountants will tell you to get it done early. Cited to GOV.UK, checked 20 October 2026.
Does Making Tax Digital for Income Tax apply to me?
Making Tax Digital for Income Tax is already compulsory for sole traders and landlords with qualifying income over £50,000. That started on 6 April 2026. The bar drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Qualifying income is your gross self-employment and property income before expenses, and HMRC judges it from your tax return two years earlier. Cited to GOV.UK, checked 20 October 2026.
Self Assessment deadlines and late-filing penalties: what do I owe if I miss 31 January?
The online return and the payment are both due by 31 January after the tax year ends. File late and you owe £100 on day one, £10 a day once you pass three months, and further penalties at six and twelve months. A return filed a year late costs at least £1,600 even if you owe no tax at all. Pay late and HMRC adds 5% of the unpaid tax at 30 days, 6 months and 12 months, plus interest. Cited to GOV.UK, checked 20 October 2026.
What are payments on account, and why is my January tax bill so high?
If your last Self Assessment bill was over £1,000, and less than 80% of your tax was collected at source, HMRC makes you pay next year’s tax in advance. Two payments on account, each half of last year’s bill, due 31 January and 31 July. That is why your first proper January can demand 150% of what you expected: the whole of last year’s bill plus half of it again for the year ahead. Cited to GOV.UK, checked 20 October 2026.