The deadline for newly self-employed individuals to register for Self Assessment is looming large and new small business owners may need to register now to avoid potentially heavy financial penalties.
Failure for individuals who became self-employed during the 2016-17 tax year, which ended on 5 April 2017, to register by the Thursday 5 October cut-off date can lead to penalties imposed by HMRC. This can amount to up to 30 per cent of the tax which is owed, unless the tax is paid in full by the online tax return deadline of 31 January. Even if you have registered, you might want to take note that if you’re planning to submit a paper tax return, the 31 October deadline is also approaching.
Research conducted by Informi this year revealed that many small business owners struggle to meet deadlines imposed by the tax regulator, with nearly one in four telling us they have previously failed to submit their online tax returns in time, and seven per cent missing the 31 January deadline on multiple occasions.